Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and Jubilee Oil Holdings, as well as Tullow Ghana Limited, have announced the successful start-up of the Jubilee South East (JSE) Project offshore Ghana.
In order to maintain gross Jubilee output over 100,000 bopd, the first JSE production well has been brought online. Two further producers and one water injector are anticipated to go online this year.
Through an ongoing infill drilling program, Tullow and its partners want to maintain this higher level of production at Jubilee over the next years.
The partnership has identified multiple future drilling locations and is focused on high-grading these opportunities to further extend the plateau and realise the full potential of the significant Jubilee resource base.
To drill wells and put up the infrastructure necessary to bring previously untapped reserves to production, Tullow and its partners have invested over $1 billion over the last three years in the JSE Project.
The project pioneered the use of regional vendors, and the vast majority of the intricate offshore infrastructure was built by regional businesses in Ghana, employing more than 90% local workers.
This shows the growth of Ghana’s supplier base, which can now sustain important parts of the country’s oil and gas industry, and it is evidence of Tullow and its partners’ dedication to building up local capability.
A celebration honoring First Oil will take place in the third quarter of 2023.
The successful start-up at Jubilee South East is an important milestone for Tullow and for Ghana, and I would like to thank everyone who has contributed to putting this close-by Ghanaian facility into production, according to Rahul Dhir, Chief Executive Officer of Tullow.
“Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business.
“We are well positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cash flow. This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”
On his part, the Energy Minister, Dr Matthew Opoku Prempeh, said, “At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey.
“The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area.
“The government of President Nana Akufo-Addo will continue to work with all our strategic partners with a view to leveraging our God-given resources for the ultimate benefit of our people.”