12th Aug 2015 06:41
LONDON (Alliance News) - Tullow Oil PLC Wednesday said it is confident of achieving its full-year production guidance after gas exports from the Jubilee field offshore Ghana resumed ahead of schedule, but said its latest two exploration wells failed to strike oil.
The FTSE 250-listed oil and gas producer said that, following the completion of work on the gas compressor on the Kwame Nkrumah floating production storage and offloading vessel, gas exports from the Jubilee field have resumed ahead of the mid-August forecast.
The exports restarted on August 3 and have steadily increased to around 100 million standard cubic feet per day whilst oil production has "returned to previous rates", Tullow said.
Tullow also highlighted the announcement by the governments of Uganda and Kenya on Monday, which stated the pair have agreed on a route for the regional crude oil export pipeline to run between the two countries.
"This is a major milestone, and Tullow looks forward to working with the governments and partners on development of the significant discovered oil resources in Uganda and Kenya," said Tullow.
Meanwhile, Tullow said the Spari-1 exploration well in Suriname and the Salander exploration well in Norway have both been plugged and abandoned after the company failed to find any significant hydrocarbons at either well.
"With production back to normal at Jubilee, we expect to meet our full-year production guidance. Looking forward, we plan to further deleverage the business as we look at non-core assets and our retained equity in our major developments," said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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