Tullow Ghana Raises Full-Year Production Guidance on Two Oil Fields

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Oil giant Tullow has heightened its production guidance on Wednesday, due to higher output from its TEN and Jubilee fields in Ghana.

The company says it now envisions a full-year (FY) West Africa net oil production, comprising of production-equivalent insurance payments, to come in at about 85,000 bbl/d to 89,000 bbl/d, compared with its previously estimated 78,000 bbl/d to 85,000 bbl/d.

FY gross production guidance from Jubilee has been raised to around 89,000 bbl/d, while production from the multi-billion dollar TEN deepwater oil and gas project is now expected to exceed the original guidance of 50,000 bbl/d.

Meanwhile, Kosmos Energy Ltd said on Monday that it expects to resume development drilling on the TEN deepwater oil and gas project in early 2018, rather than around the end of this year as it previously expected.

Kosmos, Anadarko Petroleum Corp, Ghana National Petroleum Corp and PetroSA also have stakes in the TEN project.

This follows the International Tribunal for the Law of the Sea ruling on an ocean boundary favouring Ghana in a maritime border dispute with neighbouring Ivory Coast, paving the way for development drilling to resume on the TEN project.

Tullow also said it expected to generate about $400-million in free cash flow for 2017, helped by strong production and higher oil prices in the second half of the year.

The company, which was forced to plug and abandon an exploration well offshore Suriname last month after it failed to make a commercial discovery, said net debt fell to $3.6 billion by the 31st of October.

Tullow said it had formally commenced the re-financing of its reserves-based lending facility in October and was on schedule to complete the process before the end of the year.

Tullow also cuts its 2017 capital expenditure guidance by about $100-million to $300-million on Wednesday.

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