Tullow Ghana, a subsidiary of the oil and gas company Tullow Oil, and the Ghana Navy have entered into an agreement, which is expected to add an additional layer of safety and security in the Ghanian waters, allowing the company to continue operations in its offshore fields in the area.
Tullow Ghana reported on Monday that it has signed a Memorandum of Understanding (MoU) with the Ghana Navy for the provision of security services at the Jubilee and Tweneboa Enyenra Ntomme (TEN) oil fields.
Ghanaian Navy vessels – acquired for the Ghana Navy with funding from the GCB Bank – are expected to provide asset protection in the Exclusive Economic Zone (EEC) in the TEN and Jubilee fields, according to a report by Ghana News Agency (GNA).
A total of $23.5 million will be invested during the five-year contract period for these vessels by Tullow Ghana along with the Jubilee and TEN partners. The GNA reported that this long-term contract started on 1 January 2022 and is valid until 31 December 2026.
In its update in November 2021 , Tullow stated that its offshore drilling campaign in Ghana was on track, with three of the four wells planned in 2021 being already on stream. The firm also reported a significant improvement in operating performance as combined uptime on both FPSOs was averaging circa 97 per cent while the gas offtake from the government of Ghana was averaging approximately 110 mmscfd.
At the time, Tullow’s data showed that the Jubilee field was producing around 28,700 bopd net to Tullow (gross approximately 81,000 bopd). The company also informed that the Jubilee FPSO maintenance shutdown, which was originally scheduled for September 2021, is expected to take place in April 2022.
Based on the firm’s statement, this shift in timeline allows the work scope to be optimised and gas enhancement works previously planned for a 2023 shutdown to be accelerated. Back in November last year, the TEN field was producing approximately 13,200 bopd net to Tullow (gross around 28,000 bopd).
A few days prior to this production update, Tullow exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy.
As a result, Tullow’s equity interests are expected to increase to 38.9 per cent in the Jubilee field and 54.8 per cent in the TEN fields, while completion of the transaction remains subject to finalising definitive agreements […]