Production resumes on FPSO

FPSO PixTullow Oil plc, a leading independent oil and gas, exploration and production group, says production has resumed on the FPSOKwame Nkrumah on the Jubilee Field offshore Ghana ahead of expectations.

According to Tullow, gas export restarted on Monday, August 3, 2015, and has steadily increased to around 100 mmscfd.

“Consequently, oil production has increased and has now returned to previous rates,” the British oil and gas driller said in its operational update on Wednesday.

The FPSO is stationed about 60km offshore Ghana, straddling the West Cape Three Points and Deepwater Tano licenses.

It had suffered issues with its gas compressor last month, resulting in a gas export outage from July 3, 2015, and therefore curtailed oil production.

The three billion bbl Jubilee field was discovered in 2007 by Kosmos Energy and came on stream in 2010.

Tullow also said that the governments of Uganda and Kenya have agreed on a route for the regional crude oil export pipeline.

The oil and gas exploration group said this was a major milestone “and the company looks forward to working with the governments and partners on development of the significant discovered oil resources in Uganda and Kenya”.

Additionly, Tullow said the Spari-1 well in Suriname is currently being plugged and abandoned as no significant hydrocarbon shows were encountered.

In Norway, the Salander well found sandstones with good reservoir properties but no hydrocarbons were encountered. The well was drilled in 350 metres of water to a total depth of 2,439 metres and will be plugged and abandoned, the company said.

Aidan Heavey, Chief Executive Officer said: “Tullow continues to make good progress in 2015 having reset the business and with continued emphasis on managing costs, capital expenditure and the balance sheet.”

He added: “We are also focused on operational efficiency and the Jubilee compressor issue has been resolved ahead of schedule. With production back to normal at Jubilee, we expect to meet our full year production guidance.”

Looking forward, Mr. Heavey said: “we plan to further deleverage the business as we look at non-core assets and our retained equity in our major developments.”

Tullow is quoted on the London, Irish and Ghanaian stock exchanges and is a constituent of the FTSE 250 Index.

The Group has interests in over 130 exploration and production licences across 22 countries which are managed as three regional business units: West and North Africa, South and East Africa and Europe, South America and Asia.

By Times Reporter

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