Tullow Ramping Up Oil Drilling, Exploration
From Fox Business
Jubilee in offshore Ghana is Tullow’s biggest producing oil field in Africa and delays to output increases there had weighed on shares in recent months.
“In Ghana, the Jubilee development is now looking very good indeed. We’ve fixed the problems and we’re producing around 110,000 to 112,000 b/d,” Springer said.
The company is working to debottleneck the gas handling facility at the floating production storage and offloading unit it uses to extract the crude oil in Ghana. This will allow Jubilee to reach targeted production of more than 120,000 b/d by the end of this year, Springer said.
Tullow, which partners Ghana National Petroleum Company, Kosmos Energy (KOS), Anadarko Petroleum Corp. (APC) and Sabre Oil & Gas in Jubilee, had originally planned to reach 120,000 b/d in mid-2011. But issues with clay in the oil clogging up the wells had delayed plans.
Tullow shares were down around 5% as the company narrowly missed investor estimates for production and earnings in 2012 and said it was writing off a total of $299 million for unsuccessful exploration activities and license relinquishments for the full year–more than double the previous year. Combined with the previously reported asset write downs, the total for the year is expected to be around $670 million.
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