Tullow Oil, operators of Ghana’s Jubilee and TEN fields have announced the decision to resume drilling activities on their Ghanaian fields by May 2025.
In a statement last Friday ahead of the release of the Group’s 2024 Full Year Results, Tullow said the resolution of the Ghana Branch Profits Remittance Tax arbitration removed a 320 million U.S. dollars contingent liability and reaffirms the integrity of its petroleum agreements with Ghana.
“Following the successful resolution of the Ghana Branch Profits Remittance Tax arbitration and a return to drilling at Jubilee, combined with production optimisation activities to reduce decline rates and further cost reductions, 2025 is set to be an exciting year for Tullow as we lay the foundations for capital returns and Pan-African growth,” the UK-based oil giants said.
The Noble Venturer rig with two Jubilee wells (one producer and one injector) are expected to come onstream in the third quarter of 2025, said the statement, adding that the rig will then undergo planned maintenance and restart drilling at the beginning of 2026, which will help drive an increase in production.
Tullow said there was continued progress in a bid to maximise value from TEN, “including focus on reducing the cost base to improve economics and maturing further infill potential with the aid of 4D seismic data.”
For the 2024 financial year, the company reported revenue of 1.5 billion dollars at an average realized oil price of 80.2 dollars per barrel. The company also reduced its net debt to 1.45 billion dollars, bringing its gearing ratio to 1.3 times.
The company’s average production in 2024 stood at 61.2 barrels of oil equivalent (kboepd) including 6.6 kboepd of gas with strong performance from Jubilee and TEN fields.