Tullow, in collaboration with its joint venture partners Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, has announced the successful start-up of the Jubilee South East (JSE) Project, situated offshore Ghana.
The company in a press release said the first production well at JSE had been brought online, and an additional two producers and one water injector are expected to begin operations within this year. These developments will contribute to sustaining gross Jubilee production at over 100,000 barrels of oil per day (bopd).
Tullow and its partners intend to maintain this increased production level at Jubilee over the coming years through an ongoing infill drilling program. The partnership has identified multiple future drilling locations and is focused on prioritizing these opportunities to further extend the plateau and unlock the full potential of the substantial Jubilee resource base.
Over the past three years, Tullow and its partners have invested approximately $1 billion in the JSE Project, including drilling wells and installing the necessary infrastructure to bring previously untapped reserves into production.
The project has emphasized the involvement of local suppliers, with the majority of the complex offshore infrastructure being fabricated by Ghanaian companies and more than 90% of the workforce being local. This demonstrates the growth and capability of the Ghanaian supplier base, which can now support significant elements of the oil and gas industry, highlighting Tullow and its partners’ commitment to developing local capacity.
A ceremonial event to celebrate the achievement of First Oil is scheduled to take place in Ghana during the third quarter of 2023.
Rahul Dhir, Chief Executive Officer of Tullow, expressed his gratitude, stating, “Successful start-up at Jubilee South East is a significant milestone for Tullow and for Ghana, and I would like to thank all those who have played a role in bringing this near-field Ghanaian development into production. Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business. We are well positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cashflow. This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”
Dr. Matthew Opoku Prempeh, Minister of Energy in Ghana, also expressed his satisfaction, stating, “At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey. The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area. The government of President Nana Addo Dankwa Akufo-Addo will continue to work with all our strategic partners with a view to leveraging our God-given resources for the ultimate benefit of our people.”
