Tullow Says First TEN Gas Sales Soon

Africa-focused UK independent Tullow Oil issued a trading statement April 25 for the year to date, ahead of its annual general meeting (AGM) the same day.

Offshore Ghana, it expects gas sales from the TEN field to commence in June, and that drilling of a first new production well on the Ntomme field (also TEN) is under way, while on its Jubilee field it reported that the first shutdown to stabilise the turret-bearing on the Jubilee production ship (FPSO) was completed successfully. A further shutdown of one week is planned for end-2018 to rotate the Jubilee FPSO to its permanent heading and install the final spread mooring anchoring system.

Tullow’s average worldwide equity oil production has been 87,700 barrels of oil equivalent per day, including production-equivalent insurance payments in Ghana. Full year guidance remains 82,000-90,000 b/d oil, and working interest gas production of 3,500 - 4,500 boe/d.  It expects annualised 2018 UK gas production to be around 1,900 boe/d as the final producing fields will cease production in 3Q2018, with decommissioning continuing in the North Sea.

Onshore Uganda, Tullow said that the farmdown to Total and Chinese state CNOOC at its Lake Albert oil development project is still pending government approval, one year after CNOOC pre-empted an earlier deal to Total, with a final investment decision now expected 2H2018. Offshore Namibia, it expects to spud the Cormorant wildcat well on licence PEL37 in 3Q2018 using drillship Ocean Rig Poseidon.

Tullow agreed terms early 2018 to acquire a 100% stake in five blocks offshore Peru (Z64 to Z68) and earlier this month the congress there began an enquiry to ensure that due process was followed. Tullow said it is confident that it was. This follows a change of national president last month. Tullow's agreement to acquire a 35% interest in Block Z-38 from Karoon Gas Australia is not part of that enquiry.

Tullow said that a full tensor gradiometry (FTG) gravity survey onshore its Cote d’Ivoire blocks began this month, and that it expects to acquire 2D seismic in Cote d'Ivoire in 2019. In Mauritania, a large 9,000 sq km 3D seismic survey commenced in December 2017 and would be completed June 2018.

Offshore Jamaica, a 2,200 sq km 3D survey commenced in April 2018.  This is the first 3D survey in Jamaica, following Tullow's acquisition of the acreage in late 2014, and follows a successful 667 km 2D seismic survey in 1H2017. Tullow's 20% farm down in Jamaica to United Oil and Gas was completed on March 1 2018.

Following its AGM at midday April 25, Tullow said that Kevin Massie will step down as company secretary, to be replaced by Adam Holland, until now its senior legal adviser.