Tullow Oil, a UK-based oil and gas company, has commenced production from the first of four wells on an offshore field in Ghana. The remaining three wells are expected to start production later this year.

The Jubilee South East (JSE) project, announced to start on July 17, 2023, has successfully put the first well into production, with two additional producers and one water injector to be brought online later in the year. This development will help sustain gross Jubilee production at over 100,000 barrels of oil per day (bopd). Tullow had announced its plans to drill these four wells in November 2022.

Tullow, along with its joint venture partners including Kosmos Energy, Ghana National Petroleum Corporation, Petro SA, and Jubilee Oil Holdings, intends to maintain the increased production level at the Jubilee field over the next few years through ongoing infill drilling.

Rahul Dhir, CEO of Tullow, expressed his appreciation for the successful start-up of the JSE project, highlighting the significance of this milestone for both Tullow and Ghana. He thanked everyone involved in bringing this near-field Ghanaian development into production. Dhir emphasized that the project's successful execution demonstrates Tullow's strong project management and operating capability, which is a key catalyst for unlocking value for the company.

Tullow expects production to ramp up in the second half of 2023, generating significant free cash flow and enabling the company to reduce its debt. The company aims to transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.

The joint venture has identified multiple future drilling locations and is focused on optimizing these opportunities to extend the production plateau and maximize the full potential of the Jubilee resource base. Over the past three years, the JV has invested approximately $1 billion in the JSE project, which involved drilling wells and installing the necessary infrastructure to bring previously undeveloped reserves into production.

Tullow highlighted the involvement of local suppliers and companies in Ghana in the project. The majority of the offshore infrastructure was fabricated by local companies, and more than 90 percent of the workforce was local. This demonstrates the growth and capability of the Ghanaian supplier base, which can now support significant elements of the oil and gas industry. A ceremony to celebrate the achievement of first oil will be held in Ghana during the third quarter of 2023.

Dr. Matthew Opoku Prempeh, Minister of Energy for Ghana, congratulated Tullow and the Jubilee partners on reaching this important milestone. He highlighted that the approval of the Greater Jubilee Full Field Development Plan paved the way for the JSE project's development, which has now resulted in the delivery of the first oil from the JSE area.

The Jubilee field was discovered in 2007, and production started in December 2010. Petrofac was selected in July 2022 to provide operations, maintenance, and technical support for the FPSO Kwame Nkrumah at Jubilee. Sparrows Group was also contracted for crane maintenance services on the FPSO.

Kosmos Energy, another partner in the project, confirmed the start-up of the JSE project, with the second well expected to begin production later in July 2023. The additional wells will increase Jubilee production to over 100,000 bopd gross. Kosmos believes that the Jubilee field has the potential to produce over a billion barrels of oil equivalent gross, benefiting Ghana, the partnership, and investors.