Operational update

Jubilee field production - Ghana

Tullow is pleased to report that following the completion of work on the gas compressor on the FPSO Kwame Nkrumah, gas exports from the Jubilee field have resumed ahead of the mid-August forecast. Gas export restarted on 3 August 2015 and has steadily increased to around 100 mmscfd. Oil production has consequently increased and has now returned to previous rates.

East Africa operational update - Uganda and Kenya 

Following a state visit to Uganda by His Excellency Uhuru Kenyatta, President of the Republic of Kenya, a joint communiqué from both Governments was issued on 10 August 2015 which stated that, “the two Heads of State agreed on the use of the Northern Route i.e. Hoima-Lokichar-Lamu for the development of the crude oil pipeline.” Tullow is pleased the governments of Uganda and Kenya have agreed on a route for the regional crude oil export pipeline. 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.

Exploration update - Suriname and Norway

In Suriname, the Spari-1 well in offshore Block 31 is currently being plugged and abandoned. Despite the presence of targeted Campanian turbidite sands in the well no significant hydrocarbon shows were encountered. The well was drilled in 52 metres of water to a total depth of 3,830 metres. Tullow has 30% equity in this INPEX operated block.
In Norway, the Salander well in offshore PL 650 found sandstones with good reservoir properties but no hydrocarbons were encountered at this location. The well was drilled in 350 meters of water to a total depth of 2,439 metres and will be plugged and abandoned. Tullow has 25% equity (subject to final government approval) in this E.ON E&P Norge AS operated licence.

COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE OFFICER, SAID: 

“Tullow continues to make good progress in 2015 having reset the business and with continued emphasis on managing costs, capital expenditure and the balance sheet. We are also focused on operational efficiency and the Jubilee compressor issue has been resolved ahead of schedule. 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. The decision by the Governments of Uganda and Kenya with regard to the pipeline route will allow this significant project to move into a new technical and commercial phase.”