Tullow, along with its joint venture partners Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, has made an announcement regarding the successful Production of oil from Jubilee South East project (JSE) offshore Ghana.
In a recent press release, the company announced that the initial production well at JSE has been successfully activated, and two additional production wells, along with one water injector, are scheduled to commence operations within this year. These developments are anticipated to support and maintain the gross Jubilee production rate of over 100,000 barrels of oil per day (bopd).
To sustain this heightened production level at Jubilee, Tullow and its partners have outlined plans to execute an ongoing infill drilling program in the coming years
The partnership has Identified numerous prospective drilling locations and is actively prioritizing these opportunities to extend the production plateau and fully unlock the substantial resource potential of the Jubilee field.
Significant Investments and Local Engagement brought by Jubilee South East project (JSE)
Significant investments, totaling approximately $1 billion, have been made by Tullow and its partners over the past three years for the JSE Project. These investments encompass drilling wells and establishing the necessary infrastructure to bring previously untapped reserves into production.
The project places a strong emphasis on engaging local suppliers, with Ghanaian companies playing a prominent role in fabricating the complex offshore infrastructure. Additionally, over 90% of the workforce employed in the project is comprised of local individuals. This highlights the growth and capability of the Ghanaian supplier base, which now possesses the capacity to support significant aspects of the oil and gas industry. The commitment of Tullow and its partners to developing local capacity is underscored by this approach.
A ceremonial event to commemorate the milestone of First Oil is slated to occur in Ghana in the third quarter of 2023. This event will mark the official celebration of the successful commencement of oil production from the Jubilee South East (JSE) Project.
Rahul Dhir, the CEO of Tullow, expressed his appreciation and acknowledged the significance of the successful start-up at Jubilee South East. He extended his gratitude to all those involved in bringing this near-field development in Ghana into production. Dhir emphasized Tullow’s strong project management and operational capabilities, which have enabled the delivery of a complex offshore project, serving as a catalyst for unlocking value within the company.
Dhir also highlighted the positive outlook for future growth, with production expected to increase in the second half of 2023, resulting in significant free cash flow generation. This development marks the beginning of substantial debt reduction and signifies Tullow’s transition into a low-debt business, providing financial flexibility to pursue value-enhancing opportunities.
Dr. Matthew Opoku Prempeh, the Minister of Energy, expressed his satisfaction and offered congratulations to Tullow and the Jubilee partners for their contributions to achieving this significant milestone. He highlighted the Ministry of Energy’s delight in reaching this stage and acknowledged the instrumental role played by Tullow and its partners throughout the journey.
Dr. Opoku Prempeh noted that the approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project. This investment has now culminated in the successful delivery of First Oil from the JSE area. He further emphasized that the government, under the leadership of President Nana Addo Dankwa Akufo-Addo, remains committed to collaborating with strategic partners to harness Ghana’s natural resources for the ultimate benefit of its people.