Tullow Oil PLC expects drilling of the Goliathberg-Voltzberg North exploration well on Block 47 (50%) in Suriname to begin shortly. News comes as part of the company’s 2021 outlook released Jan. 27. Work also continues developing prospect inventory on Orinduik and Kanuku licences offshore Guyana.
The group’s working interest oil production is forecast to average 60,000-66,000 b/d this year. The forecast reflects the drilling hiatus in 2020, a planned shut-down in September on Jubilee, and deferred development drilling on Simba in Gabon.
Capital expenditure for the year is forecast at $265 million with an additional $100 million to be spent on decommissioning.
In Ghana, oil production from Jubilee and TEN for the year to date is in line with expectations, supported by gas offtake from the Government of Ghana of 125 MMscfd.
A new oil offloading system is being commissioned on Jubilee and is expected to be ready for a first lifting in February.
A drilling rig is being mobilized to Ghana to commence operations in the year’s second quarter. The first new production well on Jubilee is expected to be onstream in the third quarter.
In the non-operated portfolio, development drilling is restarting in Gabon and Equatorial Guinea, whilst decommissioning activity continues in Mauritania and the UK.
In Kenya, following approval of the 2021 work program and budget, Tullow received an extension to its exploration licenses to end-2021. Tullow and its joint venture partners are now reworking the development project and expect to submit a revised plan to the Kenyan government later this year.
In Côte d’Ivoire, Tullow has reduced its onshore exploration portfolio to focus on unlocking value from the CI-520 block.
For 2020, the group’s working interest oil production averaged 74,900 b/d. Full year 2020 revenue of $1.4 billion with gross profit of $400 million is expected. Capital and decommissioning expenditure for 2020 were $290 million and $50 million, respectively. Pre-tax impairments and exploration write-offs are expected to be in line with the $1.4 billion reported in first-half 2020 results.
