OIL AND gas explorer Tullow Oil has cut its full-year output target because of a slower-than expected ramp up from its Jubilee field in Ghana.
Production for this year would average 79,000 to 81,000 barrels of oil equivalent a day, Tullow said in a statement, below the 82,000 to 84,000 forecast in August.
The Jubilee field, Tullow’s largest project, is pumping about 80,000 barrels of oil a day, with recent output rates below expectations due to mechanical issues related to well designs. The field was due to reach a plateau rate of 120,000 barrels a day in August.
“While there are some temporary technical issues, in terms of production levels of 120,000 barrels a day and recoverable reserves there is no change,” Tullow Oil’s chief financial officer Ian Springett said.
The company expects to deliver record cashflows this year, underpinned by the production at the Jubilee field.
Tullow said it was abandoning the Montserrado-1 well offshore Liberia after failing to find commercial amounts of oil. Further drilling is expected on the licence, operated by Anadarko Petroleum Corp. “The drill ship is being mobilised to Sierra Leone to drill the Mercury-2 appraisal well and the Jupiter exploration well,” Tullow said.
Tullow Oil has also announced the appointment of Simon Thompson (52) as non-executive chairman of the group. He will succeed Pat Plunkett in January. – (Additional reporting Bloomberg)
