Daily oil production reduces by 3 thousand barrels
The inability of the Ghana National Gas Company to complete the country’s gas infrastructure project at Takoradi on time is taking a heavy toll on oil production at the Jubilee Field.
According to Tullow Ghana Limited, daily crude oil production has declined by 3 thousand barrels because they have to contain the natural gas coming out of the field in some wells. This has made it difficult to extract more crude oil, it explained.
The field is currently doing a little over 100 thousand barrel a day. This is likely to affect revenue earned from the Jubilee in terms of taxes and royalties for the state.
But speaking to Joy Business after engaging shareholders in Ghana, General Manager of Tullow, Charles Darku said they are working with the Ghana Gas Company to ensure that gas is exported to the facility as soon as it is ready.
“We are however hoping that the facility would be ready by the second half of this year”, he added.
Tullow Oil earlier this year applied to government to allow them flare the gas from the jubilee field but it looks like their request was not granted.
It argued that it had wanted to do this to safeguard the oil wells on the Jubilee field.
Meanwhile, Tullow oil is assuring shareholders that it would deliver some good returns to them for this year.
Last year could be described as a bad year for the jubilee operator as profits declined by 68 percent, while the value of their shares reduced by almost 8 percent.
But Chief Financial Officer for Tullow, Ian Springett tells Joy Business this would change this year.
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