Tullow Oil suspends gas exports from Ghana’s Jubilee field over technical fault

Tullow Oil Plc technical team carryout a regular checkup for at one of its major Plants in Ghana

Tullow Oil Plc technical team carryout a regular maintenance checkup for at one of its major Plants in Ghana

Tullow oil plc has suspended gas exports from its major African field of Ghana following a persistent technical fault.

The Jubilee field in Ghana is one of Tullow’s leading offshore projects from which its major capital investments are based.

The company said the technical fault has also lowered its output since July 3, 2015 but the reservoirs and resources remain protected as it assembles experts to fix the anomaly

“Oil production is currently constrained to approximately 65,000 bopd and is under constant review but there is no effect on the Field’s reservoir or resources” notes a statement from Tullow Oil.

Tullow is looking at revisiting it 2015 production forecast for the Jubilee field.

“Tullow will review its 2015 production forecast for Jubilee and provide an update on progress at its Half Year Results on 29 July” reads the statement.

The company has not had a smooth relationship with Ghana concerning Jubilee Oil field after failure to meet production targets of the field in 2012. The declining productivity led to a sharp fall in revenues for the Ghanaian government which had budgeted for oil revenue of more than $650 million.

Tullow blamed its failures on “sand contamination of the flowlines that carry the oil from the underwater wells” to the storage facility on the surface.

According to reuters, Tullow shares also fell 2 percent after news that oil and gas exports from the field would be reduced for a further three weeks to fix a gas compression issue that has affected output since 3 July.

 

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