Tullow Oil is pushing ahead with plans to extend the operating licenses for the Jubilee and TEN fields in Ghana to 2040 after finalizing a new gas sales deal.
The company is now working with government bodies to complete the remaining agreements.
Tullow’s new CEO, Ian Perks, who took over in September, outlined these goals in a recent trading update.
In June, Tullow and its partners PetroSA, Kosmos Energy, GNPC, and Explorco signed an MoU with the Ghanaian Government.
The MoU covers the West Cape Three Points and Deep Water Tano blocks.
Tullow confirmed that a new gas sales contract has been signed for Jubilee, giving clearer gas pricing for the life of the extended licenses.
The company is still working through outstanding matters such as payment arrangements for gas sales and a revised development plan for Jubilee, which will need parliament’s approval.
Production at Jubilee has averaged about 61,000 barrels per day gross (23,900 barrels per day net to Tullow) through October, supported by a new production well completed this year.
A second well, J73-P, started drilling this month and should begin producing before the year ends.
The TEN field has produced around 16,000 barrels per day, beating expectations because of strong output from the Ntomme and Enyenra fields.
The floating production storage and offloading vessels at Jubilee and TEN recorded an average uptime of 97 percent up to the end of October.
Tullow has approved a 2026 drilling plan that includes five wells, with four confirmed wells three producers and one water injector and an optional additional producer.
The company is also running an ocean bottom node seismic survey and using new 4D seismic data to update reservoir models and plan future drilling.
On the financial front, Tullow has been working to improve its position through asset sales. It has completed the sale of its Kenya interests for at least 120 million dollars and its Gabon assets for about 300 million dollars after tax.
Tullow is now in discussions with bondholders and investors as it seeks refinancing options before a bond comes due in May 2026.
Money owed by the Ghanaian Government, including development debt for TEN and unpaid cash calls, stood at more than 200 million dollars net to Tullow as of last month.
Perks said the immediate focus is to place Tullow on stable financial ground. He noted that the company is concentrating on strong performance in Ghana, tighter cost control and refinancing its capital structure.
He added that the early drilling results in Ghana are positive and that the second well in the programme has now been spudded. He said the company will work to manage natural declines and boost production with new wells as it looks toward 2026.
source: www.offshore-technology.com
African Energy Council