Production at Ghana’s Jubilee Oil Field experienced a slight decline, reaching 89,000 barrels per day (bpd) by the end of October 2024. This was revealed in Tullow Oil’s November 2024 Trading Update, published on November 28, 2024. The field had been producing over 90,000 bpd as of July this year.
Reasons for the Decline
According to Tullow Oil, the decrease in production was primarily caused by issues with specific wells on the Jubilee Field. The underperformance of the J69-P well, which had previously been identified as problematic, played a significant role. The company also attributed the challenges to unplanned downtime at the Ghana Gas Company’s onshore gas processing plant and reduced water injection capacity caused by power outages.
Optimistic Outlook
Despite these setbacks, Tullow Oil expressed confidence in improved operations. The company highlighted that corrective measures had been implemented, and ongoing production enhancement activities are expected to offset the declines experienced in the latter half of 2024. Additionally, the Floating Production Storage and Offloading (FPSO) units at both Jubilee and TEN fields have maintained an average uptime of 98% so far this year, a performance Tullow Oil sees as a positive indicator.
The company also announced plans to deploy a 4D seismic program in Ghana starting in January 2025. This initiative is expected to provide critical data to optimize well placement for future drilling projects.
Government Debt Concerns
Tullow Oil disclosed that the Government of Ghana owes $40 million for gas supplied from the Jubilee and TEN fields, categorizing this as overdue payments. The company noted that resolving these debts could significantly strengthen its financial position before the end of the year.
Source: TheDotNews