Leading Africa focused independent oil and gas explorer Tullow Oil has revised its 2017 oil production forecast upwards to 85-89,000 bopd.
Full year West Africa net oil production guidance, including production-equivalent insurance payments,has been increased from initial forecasts of 78-85,000 bopd, following strong production performance from the TEN and Jubilee assets.
The TEN fields floating production and storage offloading vessel commissioning has been completed with 2017 gross production now expected to exceed guidance of 50,000 bopd following higher rates in the second half of the year.
Drilling is to resume early next year.
Additionally the Greater Jubilee Full Field Development Plan approval received from the Government of Ghana with drilling to commence in 2018.
A Uganda farm-down has been submitted to the Government for approval following signature of pre-emption documentation.
Deal completion is expected in the first half of 2018, with the final investment decision in the first half of 2018.
The South Lokichar exploration and appraisal drilling campaign has now concluded and results are being evaluated and incorporated in the development plans.
Early Oil Pilot Scheme (EOPS) is now expected to commence early in 2018.
There was dissapointed in South America’s Suriname with the Araku-1 wildcat well showing no significant reservoir quality rocks encountered.
However the presence of gas condensate de-risks deeper plays for future possible exploration.
Full year Capex guidance has been reduced to c.$0.3 billion.
Chief operating officer Paul McDade said: “I am pleased to report that Tullow continues to make good operational and financial progress.
“The business is generating free cash flow which is enabling us to continue to reduce our debt.
“We have upgraded our oil production forecasts for West Africa following strong production at both Jubilee and TEN.
“In East Africa, both our projects are making steady progress towards Final Investment Decisions with our Kenyan business beginning the important shift from exploration and appraisal to development.
“With financial discipline and efficiency embedded across the group, and with market conditions showing some early signs of improving, Tullow is well placed to benefit both from targeted investment in our diverse, low-cost portfolio and the opportunities that this point in the cycle presents.”
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