The turnaround of Tullow has gained momentum in the first half of 2022, with solid production from our West African portfolio driving stronger financial performance, Rahul Dhir, Chief Executive Officer, Tullow Oil plc, has reported.
Commenting on a half year report, released to the Ghanaian Times yesterday, he forecasted “Our drilling programme has been very efficient and at current performance levels, we will be able to deliver our planned programme of wells through next year with just one rig.”
Dhir again said “We added material, un-hedged production in Ghana through the pre-emption of the Kosmos-Oxy deal and took over the Operations & Maintenance (O&M) of the Jubilee Floating, Production, Storage (FPSO) facility, to ensure that we can sustain the good operating performance and deliver further operating cost improvements.
He said, gross production from the Jubilee field averaged 82,000 barrels of oil per day(kbopd) in the first half of the year, representing an increase of more than 15 percent, compared to the first half of 2021.
This, he explained was due to good well and operational performance, which included the successful completion of the planned, biennial maintenance shutdown of the Jubilee FPSO in May.
Dhir said “Full year net production guidance for Jubilee is 32 kbopd. Gross production from the TEN field averaged 24.3 kbopd in the first half of the year, in line with expectations.
“Full year net production guidance for TEN is 13kbopd, with the expectation of an increase in production rates when the En21-P well comes on stream in the fourth quarter.”
Giving details of the 2022 first half results summary, the Tullow Chief said, group working interest production for the first half of 2022 averaged 69,000 barrels of oil entitlement (kboepd), and that, Ghanaian drilling programme was ahead of schedule, having completed two previously drilled wells and drilled and completed another three wells.
A further six wells are expected to be drilled and two of these completed by year-end, he added.
Dhir said, operational delivery continued strong according FPSO uptime (Jubilee 95 percent and TEN 99 percent), gas export (averaging 90 million standard cubic feet per day ( mmscfd), and water injection (Jubilee about 170,000 barrels of water per day, (kbwpd) and TEN about 65 kbwpd).
Reserves of 242 million barrels as of 30 June, was valued at $4.7 billion after hedging while revenue of $846 million was made with realised oil price of $87 per barrel after hedging and gross profit of $620 million, he said, indicating that, profit after tax declared was $264 million, with underlying operating cash flow of $165 million.
He reported that “Capital investment in the first half of 2022 was c.$156 million plus decommissioning costs of $29 million while net debt as at 30 June, 2022 was $2.3 billion.
FROM CLEMENT ADZEI BOYE, TAKORADI