The ten project is now over 55 per cent complete, with all the 10 wells drilled expected to produce crude.
The first oil is expected in mid-2016, Aidan Heavey, Chief Executive Officer of Tullow Oil, has disclosed.
He said the 4.5 billion dollar project remained within the budget, and on schedule to scale up the oil production in Ghana to about 200,000 barrels per day.
Mr Heavey said this at the Tullow Oil Investors Forum in Accra on Wednesday, to present to shareholders, the company’s performance within the past year and the outlook for the year ahead.
The TEN Project is Ghana’s second major oil development which takes its name from three offshore fields-Tweneboa, Enyenra and Ntomme-all situated in the Deepwater Tano Block, around 60km offshore Western Ghana.
He said with the rejection of Cote d’Ivoire’s request that Ghana be ordered to suspend all exploration and exploitation in the disputed area by the Special Chamber of the International Tribunal of the Law of the Sea (ITLOS), the TEN project would now continue unencumbered.
Mr Heavey said last year was one of the challenging years for Tullow, as a result of low crude prices which plummeted from a peak of 115 dollars per barrel in mid-2014 to 53 dollars at the end of the year.
He attributed the decline in the oil price to the rapid expansion of the U.S oil shale industry at a time of subdued demand for oil across the world.
Mr Heavey said Tullow had to respond to the changing landscape with a decision to reduce future expenditure on complex deepwater expansion, while priorities were shifted, with capital expenditure being re-allocated.
He said with the sort of measures put in place, Tullow was expected to emerge from the challenging times as a leaner, fitter and more cost-conscious organisation, with all the great capabilities of the company very much maintained.
Focusing on Tullow operations worldwide, he said the group’s working interest production for the first quarter of 2015 was in line with expectation, with West Africa averaging about 65,800 barrels of oil per day (bopd), while Europe averaged 9,000 bopd.
Mr Heavey said the excellent progress continued across West Africa, with strong production from all fields, adding, “The addition of TEN in 2016 is expected to take the group production to an average of over 100,000bopd.”
He said progress continued across the East Africa development in Uganda and Kenya towards the option to sanction the project by the end of 2016.
Mr Heavey said the Jubilee Field was performing well, with production averaging over 100,000bopd for the first quarter of 2015, while the Jubilee FPSO exported around 80mmscfd after the completion of the gas processing facility on March 31, 2015.
He said Tullow’s listing on the Ghana Stock Exchange in 2011 and the company’s annual update to Ghanaian shareholders demonstrated the long term commitment to the country, and also the desire for Ghanaians to have the opportunity to participate in the industry which developed the country’s natural resources.
Mr Heavey said Ghana remained at the heart of the company’s business, adding, “We will maintain our long-standing pledge to develop Ghana’s resources in a way that is responsible, and create maximum benefit for Ghanaians and the government”.
By Lawrence Markwei