Yesterday, Friday, July 14, 2023, the Tolo Oil Company announced the start of operation of the southeastern Jubilee project off the coast of Ghana, and revealed future development plans within the project, which are expected to be completed before the end of this year.
The operation step came after the company, which is listed on the London Stock Exchange, has successfully completed the preliminary steps over the past 3 years, with the participation of a number of major companies, according to what the company published on its website.
In addition to Tollo Oil, the Jubilee offshore project is participating in the American Kosmos Energy, the National Oil Corporation of Ghana, the National Oil Corporation of South Africa “Petrosa” and the Jubilee Oil Holding Company.
A Kosmos official expected huge reserves for the project, which may exceed one billion barrels of equivalent, according to what was followed by the specialized energy platform.
Project steps
Preparatory work for the development of the southeastern Jubilee project began 3 years ago. Tolo Oil and its partners have committed nearly $1 billion in investments to be spent on drilling wells and installing infrastructure.
These steps aimed to take advantage of the reserves that were not developed in the project to be able to produce additional barrels.
Yesterday, Friday, the British company and its partners started operating the first production wells, with plans to add two additional production wells and a third water-pumping well before the end of 2023, so that the developer alliance can maintain the project’s estimated production volume of more than 100,000 barrels per day.
The companies plan to enhance the production ambitions of the project with a continuous drilling program, and the expected drilling sites have been agreed upon. To take advantage of the full potential of the offshore project and field resources.
Ghana is scheduled to host a celebration of the first oil production from the southeastern Jubilee project, during the third quarter of this year 2023 (from July to the end of September).
The British company had drilled two exploration wells at the end of last year (2022), in addition to a third well in January at the beginning of this year (2023).
development plans
Tullow Oil revealed aspects of the plan to develop the Jubilee project off the coast of Ghana. In its initial phase, the project includes linking 4 wells under the sea to a floating production, storage and offloading vessel.
This comes along with 7 additional wells whose role the company did not disclose at the current stage, according to Upstream Online.
The flows from the Jubilee project are to be transferred to the floating vessel, the Tullow Kwame Nkrumah, which has been in production from the Jubilee field for nearly a decade.
With the operation of the well, yesterday, Friday, Tollo Oil may turn to operating an additional well during the current month of July, without specifying a date for operating the third production well or the water pumping well, but the company contented itself with confirming that the operation of the remaining facilities will be before the end of 2023.
The production of the Jubilee field, during the last quarter of last year, was estimated at about 80,800 barrels per day, and with the decrease in water pumping, production declined during the first quarter of 2023.
The American company Kosmos Energy is counting on the southeastern Jubilee project to increase the field’s production, to up to 110,000 barrels per day by the end of 2023, according to Energy Voice.
Ghana gains
The large-scale development plan for the southeastern Jubilee project was approved by the Ghanaian Ministry of Energy in October 2017, and the development steps continued until it reached the start-up stage.
The project seems to be a glimmer of hope for Ghana. Tolo Oil relied on local suppliers in addition to outsourcing the majority of the marine infrastructure used in the project to be manufactured by companies in the West African country.
The project has a social dimension, as more than 90% of its workforce is employed based on local skills in Accra, and the local gains will reflect positively on the Ghanaian oil and gas industry.
In turn, the CEO of Tollo, Rahul Dhir, confirmed that plans to increase production from the project during the second half of 2023 herald future growth for the consortium of developing companies, noting that the Jubilee project is a milestone for his company and Ghana as well.
Andy Inglis, CEO of the American Kosmos company, added that the expected reserves of the project exceed one billion barrels of equivalent, revealing that the financial returns will start flowing to the participants during the second half of next year 2024.
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