Tullow - comment

When it comes to production data for Tullow in their main Ghanaian operations I feel like a broken record. And this morning, post-Kosmos’ Q3 results it remains the same. Production at Jubilee remains in line with strong guidance into FY23 and beyond production levels. TEN remains the lagger, with production in line with previous weaker guidance.

Specifically, at Jubilee, the first well drilling has commenced ahead of schedule and all three wells are expected to be drilled by early 2023 and initial production in mid-2023. This will increase gross production to c. 100,000 boepd from the current c.89,000 boepd. The transition to Tullow operating and maintaining the FPSO has taken place and performance has continued to be strong with uptime of over 98%. This has led to further cost savings being identified. TEN has drilled the second of two wells to identify the Ntomme reservoir, but the well has encountered poorer-than-expected reservoir quality.

Separately, Tullow’s license extension and “soft” deadline for the Government of Kenya to approve the Field Development Plan was extended to the 6th of November (yesterday) but as of yet, we have not received any update on the process.