Charles Darku
The delayed completion of the national gas infrastructure project by the Ghana National Gas Company (GNGC) Limited at Atuabo in the Western Region has led to a reduction in the oil production of Tullow Oil Ghana by 3,000 barrels at the Jubilee Oilfield.
Charles Darku, General Manager of Tullow Oil Ghana, who disclosed this at an investors’ forum on Wednesday in Accra, said even though his outfit was currently producing a little above 100,000 barrels of oil per day, the slump in the production figures could affect revenue earned through taxes and royalties to the State.
In spite of the afore-stated, Mr Darku said Tullow Oil Ghana was confident it would meet its oil production target by end of year.
‘We are however hoping that the facility would be ready by the second half of this year,’ he indicated, noting that Tullow and Ghana Gas would ensure that gas was exported to the facility as soon as it was completed.
He noted that last year the company’s profits declined by 68 percent.
Mr Darku assured shareholders that Tullow Ghana would deliver good returns for shareholders this year.
Meanwhile, Tullow Ghana has announced its readiness to offload some 400 mcfs of gas to the State free of charge.
In line with this, Tullow Ghana and Ghana Gas were collaborating to install a by-pass facility to provide an alternative route that would offer limited processed gas to the Volta River Authority (VRA).
The facility, expected to be installed by close of next week, would serve as a back-up facility when the plant breaks down or shuts down for routine maintenance, he noted.
Ghana Gas has been unable to carry complete the project owing to lack of funds, according to reports.
Currently, Tullow Oil is re-injecting gas into the oil wells.
It spent $100 million to develop a third well in October 2013 to relieve the two existing wells of excess gas.
The investor forum is an annual event after the Shareholders Annual General Meeting (AGM) in London.
Tullow Oil recorded net debt of $1,909 million for the 2013 financial year as against $989 million in 2012, a 93 per cent increase.
By Samuel Boadi
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