Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, along with Tullow Ghana Limited's joint venture partners, have announced the successful start-up of the Jubilee South East (JSE) Project offshore Ghana.
In order to maintain gross Jubilee output over 100,000 bopd, the first JSE production well has been brought online. Two further producers and one water injector are anticipated to go online this year.
By an ongoing infill drilling program, Tullow and its partners want to maintain this higher level of production at Jubilee over the next years.
The collaboration is focusing on high-grading these possibilities to further extend the plateau and realize the full potential of the substantial Jubilee resource base. The company has identified numerous possible drilling locations.
$1 billion investment
Tullow said in a news release that it and its partners had spent $1 billion over the preceding three years on the JSE Project to drill wells and put up the infrastructure needed to bring previously untapped reserves into production.
According to the press statement, the project increased the use of local suppliers, and the vast majority of the intricate offshore infrastructure was built by Ghanaian enterprises employing more than 90% local workers.
This "shows the evolution of the Ghanaian supplier base that can now support significant elements of its oil and gas industry and is a testament to Tullow and its partners' commitment to developing local capacity," the statement read.
Rahul Dhir, Chief Executive Officer of Tullow, commented on the project and noted that Jubilee South East's successful start-up was a significant milestone for both Tullow and Ghana.
"I would want to express my gratitude to everyone who helped put this Ghanaian development into production.
We have completed complicated offshore development thanks to our strong project management and operations capabilities, which is one of the primary drivers of value unlocking for our company.
"With production ramping up in the second half of 2023, we will be well-positioned for future expansion and produce significant free cash flow.
As we continue to transform into a low-debt organization with the financial freedom to explore value-adding opportunities, this is the beginning of meaningful deleveraging.
Dr. Matthew Opoku Prempeh, the Minister of Energy, also made a statement about it: "As the Ministry of Energy, we are delighted by this critical milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in many ways to this trip. "Investment in the development of the JSE project was made possible by the ministry's approval of the Greater Jubilee Complete Field Development Plan in October 2017. This culminated in the delivery of the First Oil from the JSE area.
The President of Ghana, Nana Addo Dankwa Akufo-Addo, said, "The administration will continue to work with all our strategic partners with a view to harnessing our God-given resources for the ultimate benefit of our people."
