Tullow Oil has reported a US$40 million debt owed by the government of Ghana for gas supplied from the Jubilee and Tweneboa Enyenra Ntomme (TEN) oil fields, labelling it as “overdue gas payments” in its latest trading update.
The company stressed that resolving these arrears would significantly boost its financial stability and ease liquidity pressures amid operational challenges.
Production from the Jubilee oil field fell to 89,000 barrels per day (bpd) in October, down from 90,000 bpd in July. Tullow attributed the dip to various operational setbacks, including underperformance at the J69-P well, unplanned downtime at the Ghana Gas Company’s onshore processing plant, and power-related issues impacting water injection.
The company acknowledged that the October production update fell short of expectations, primarily due to flagged issues at the J69-P well.
Despite these challenges, Tullow remains optimistic about stabilizing output. The company is implementing corrective measures and pursuing production optimization strategies to address the decline, with expectations that these efforts will mitigate further setbacks in the second half of 2024. Operational reliability has been strong, with the company achieving 98% uptime for its FPSO units on the Jubilee and TEN fields this year.
Tullow plans to initiate a 4D seismic program in January 2025 to improve data accuracy and inform future drilling plans. This initiative aligns with the company’s medium-term strategy to enhance production and consolidate its position in Ghana’s upstream oil sector.
While the combination of financial and operational hurdles highlights the complexities of West Africa’s oil industry, Tullow is optimistic that its strategic actions and improved financial health will deliver stronger outcomes moving into 2025.
