DJ Tullow: 2nd Ghana Oil Project Could Produce 125,000 Billion/D 09 Mar 2011 - 07:36 Did anyone notice a 'minor' typo in this DJ Newswire header today referring to future Tullow production from its second major oil development off Ghana, the Enyenra and Tweneboa fields. I assume it is meant to say the fields could produce up to 125,000 barrels equivalent per day and start up in 2014. But this is much more important news- LONDON -(Dow Jones)- Tullow Oil PLC (TLW.LN) has agreed with the Ugandan government the terms of a deal that will allow it to sell a portion of its oil licenses in the country to Total SA (TOT) and China National Offshore Oil Company (CEO), the company's Chief Executive Aidan Heavey told Dow Jones Newswires Wednesday.
The parties are now in the process of finalizing a memorandum of understanding that will allow Tullow's transaction to proceed, said Heavey.
Heavey declined to comment on reports that, as part of the deal with the government, Tullow has agreed to pay the outstanding $283 million capital gains tax bill of its former partner Heritage Oil PLC (HOIL.LN). He did say that the basic principles of the deal, "are that everyone is liable for their own taxes and pays their own taxes."
Tullow expects to get extensions on its Uganda oil licenses to make up for the delay, he said.
Total production of 250,000 barrels a day from oil fields operated by Tullow offshore Ghana is "very possible" based on current discoveries, said Chief Operating Officer Paul McDade.
Tullow expects the already operational Jubilee field to hit 120,000 barrels a day of production by June, he said. The Tweneboa-Enyenra development, which Tullow hopes to be able to sanction by the end of this year, could produce between 75,000 and 125,000 barrels a day by 2014.
A third cluster of developments near the Jubilee field also have the potential to produce between 50,000 and 60,000 barrels of oil a day in a similar timeframe, he said.
"Based on the current oil price and production coming from Jubilee, in 2011 our revenue will more than double," said Tullow's Chief Financial Officer Ian Springett.
The first cargo from Jubilee was sold a few months ago at a discount to the main crude benchmark, Brent, said Springett. However, demand for light oil from West Africa has increased following the Libyan supply disruption and Tullow expects the second Jubilee cargo to sell at close to parity with Brent and the third cargo to sell at a premium, Springett said
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