Tullow Oil to pause drilling operations in Ghana
Tullow Oil, alongside its Joint Venture Partners, is preparing to temporarily halt drilling operations in Ghana later this year, relying on existing well resources to sustain production at Jubilee and TEN fields as output diminishes.
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The cessation of drilling is scheduled to take place in 2024, with plans to resume operations in 2025 following the initiation of a procurement process for a new rig in 2024.
In anticipation of the release of the Group’s full-year results for 2023, slated for announcement on March 6, 2024, Tullow has disclosed that five Jubilee wells, consisting of three producers and two water injectors, are expected to come online in 2024. This marks the completion of drilling program activities, wrapping up approximately six months ahead of schedule due to exceptional drilling performance.
The Chief Executive of Tullow, Rahul Dhir expressed optimism regarding the company’s trajectory, citing the successful execution of Tullow’s business plan in 2023 as a significant milestone. Dhir anticipates Tullow generating around $600 million of free cash flow over the next two years, aiming to achieve its target of approximately $800 million of free cash flow from 2023 to 2025, based on oil prices assumed at $80 per barrel.
Furthermore, Tullow emphasized the debt facility secured with Glencore as an affirmation of its business plan, with no notable uncovered debt maturities until May 2026. The company remains steadfast in its commitment to leveraging its assets for production growth while prioritizing operational excellence and capital discipline.
