Crude production by Tullow and joint partners has started offshore the Jubilee South East (JSE) project.
The first well in the JSE coming onstream could push up the country’s crude oil output. This will be a significant boost, with the country’s production volumes having been on a downward trend since 2019.
In a statement, Tullow said a further two wells and one water injector are expected to come onstream this year to help sustain gross Jubilee production of over 100,000 barrels of oil equivalent per day (BOPD).
Tullow added that it plans, together with its partners, to maintain this increased level of production at Jubilee over the next few years through an ongoing infill drilling programme.
Chief Executive Officer, Rahul Dhir, commenting on the development said: “The successful start-up at Jubilee South East is a significant milestone for Tullow and Ghana”.
“Through our strong project management and operating capability, we have delivered complex offshore development – which is one of the key catalysts to unlocking value for our business. We are well-positioned for future growth, with production ramping up in the second half of 2023 that will generate significant free cash flow,” he added.
Furthermore, he noted the development marks a start to material deleveraging as they continue transitioning into a low-debt business with the financial flexibility to pursue value-accretive opportunities.
Tullow and its partners have invested US$1billion over the last three years on the JSE project, to drill wells and install the infrastructure needed to bring previously undeveloped reserves into production.
It is understood that the project has advanced the use of local suppliers, and the majority of complex offshore infrastructure has been fabricated by local companies with a more than 90 percent local workforce.
This, it indicated, demonstrates evolution of the Ghanaian supplier base that can now support substantial elements of its oil and gas industry; and is a testament to Tullow and its partners’ commitment to developing local capacity.
The Minister of Energy, Dr. Matthew Opoku Prempeh, while commending Tullow and the Jubilee partners’ work also acknowledged the development’s significance.
“Approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in developing the JSE project, which has now culminated in the delivery of first oil from the JSE area,” the minister said.
Also, he mentioned that government will continue working with all its strategic partners to leverage “our God-given resources for the ultimate benefit of our people”.
The joint-venture partners for the JSE project include Kosmos Energy, Ghana National Petroleum Corporation, Petro SA and Jubilee Oil Holdings.
The partnership is said to have identified multiple future drilling locations, and is focused on high-grading these opportunities to further extend the plateau and realise the full potential of the significant Jubilee resource base.
A ceremony to celebrate first oil is scheduled for the third quarter of 2023.