Tullow Oil announces pause in drilling operations later this year, eyes resumption in 2025

Tullow Oil Plc and its Joint Venture Partners have announced their intention to pause drilling activities in Ghana later in 2024, citing sustained production from existing wells at the Jubilee and TEN fields.

The decision to temporarily halt drilling operations is part of a strategic move to optimize resources while leveraging the productivity of current well stock.

According to the company’s statement ahead of the Group’s 2023 full-year results, scheduled for announcement on March 6, 2024, five Jubilee wells (comprising three producers and two water injectors) are slated to commence production in 2024.

This achievement marks the conclusion of planned activities under the drilling program, underscoring exceptional drilling performance and delivering results approximately six months ahead of schedule.

While drilling activity will pause in 2024, Tullow Oil Plc and its partners anticipate a resumption in 2025. Additionally, plans are underway to initiate the procurement process for a new rig in 2024, signaling the company’s commitment to sustaining and enhancing its operations in the Ghanaian oil sector.

Commenting on the company’s performance for 2023 and its outlook, Rahul Dhir, Chief Executive Officer of Tullow, said “Continued delivery of our business plan in 2023 resulted in a major inflection point as we moved from a period of investment focus to delivery of free cash flow growth. We are on track to deliver c.$600 million free cash flow over the next two years to achieve our stated target of c.$800 million of free cash flow from 2023 to 2025 at $80/bbl. The debt facility agreed with Glencore is a strong endorsement of our business plan and we have no material uncovered debt maturities until May 2026. At the same time, our assets are expected to deliver production growth, while we continue to maintain our laser focus on operational excellence and capital discipline.”

 

Source:norvanreports