||2013 Working interest production (boepd)
||% of Group production
||2014 Forecast production (boepd)
The start of 2011 saw the first lifting of Jubilee crude oil from the FPSO Kwame Nkrumah. Following the strong operating performance of the Kwame Nkrumah FPSO, Tullow, on behalf of the Jubilee Partners, acquired the FPSO from Modec on 29 December 2011. This acquisition will enable the Jubilee Partners to maximise the FPSO’s commercial value and operational efficiency whilst Modec will continue to provide operations and maintenance services.
The Jubilee Phase 1 development was completed in October 2011 when the last of the initial 17 wells were drilled, completed and brought on stream.
In 2011, gross production from the Jubilee field averaged 66,000 bopd, reaching 88,000 bopd before declining to approximately 70,000 bopd at the end of the year. However, production from the field was below expectations due to reduced productivity in a number of wells. The issue, which did not impact the level of field reserves or resources, was remdiated through a work programme successfully carried out in 2012 to regain well productivity. This work initially involved the sidetracking of the J-07 production well using a new completion design which is now on-stream. However, acid stimulations was identified as the optimum solution to return the wells to their original productivity and a number of these were successful completed in 2012 with production in early 2013 at around 110,000 bopd.
Throughout 2013, the reservoir performance continued to be strong and the Phase 1A infill wells were being completed as required and will continue to be completed as required during 2014. Planning work also continues on additional development and drilling opportunities that will significantly extend the field plateau. The first planned maintenance shutdown of the Jubilee FPSO Kwame Nkrumah was successfully completed in late September 2013. The field production was impacted during the second half of 2013 due to a number of unplanned shutdowns of the FPSO’s water injection system. The system is now fully operational and reservoir pressure and well capacity have been restored to over 130,000 bopd.
During 2013, the Ghana National Gas Company announced further delays to the start up of the onshore gas processing plant that is required to enable the export of Jubilee associated gas. The gas plant is now expected to be fully operational in the second half of 2014. As a consequence of this ongoing delay in gas export, the Jubilee partners have had to pursue various alternative gas handling options. In the fourth quarter of 2013, a third gas injection well was drilled and brought online. However, this well has had a limited impact. Discussions are ongoing with the Government of Ghana on other alternatives, including limited flaring, that will enable the field to average 100,000 bopd gross in 2014.
The TEN Project is Tullow’s second development offshore Ghana and will combine production from the Tweneboa, Enyenra and Ntomme fields. On 29 May 2013, the Government of Ghana formally approved the Development Plan. This paves the way for Tullow and its partners to proceed with the development and to define the final schedule and capital programme, with the aim of delivering first oil by mid-2016 and enabling a steady ramp up to an expected capacity production rate of 80,000 bopd. Provisions for gas export are also included in the development plan. Farm down discussions with the Government have been initiated following the PoD approval.
Development of the TEN Project will require the drilling and completion of up to 24 development wells which will be connected through subsea infrastructure to a FPSO vessel, moored in approximately 1,500 metres of water. Major contract awards for the FPSO and subsea tenders are under way and the West Leo rig has been secured to carry out the drilling and completion of the development wells. The overall cost of the development is now estimated to be $4.9bn, excluding FPSO lease costs.
Tullow has already completed the drilling of the Enyenra-6A and Ntomme-4A (Nt-04) water injection wells to better determine the oil-water contacts in each of the Enyenra and Ntomme fields. The Enyenra-6A appraisal well was completed in April 2013 after encountering 18 metres of oil pay indicating a deeper than expected oil water contact in the field. The Nt-04 well also indicated a slightly deeper oil water contact and good reservoir development, supporting our decision to add water injection facilities to the Ntomme development. An injectivity test at Nt-04 is currently being performed to confirm lateral connectivity of the target reservoirs. The wells will both be suspended for future use in the TEN development programme. A 3D seismic programme is expected to be completed over the TEN and Wawa fields by the end of the first quarter of 2014.
Following the expiry of the Deepwater Tano Exploration Licence on 18 May 2013, the remaining non-prospective acreage has been relinquished and the Jubilee Unit Area, the TEN Development and Production Area and the Wawa Discovery Area have been retained.
Production Summary - Key producing assets
2014 Development opportunities