Challenges in production and operational plans for Tullow Oil
- Tullow Oil reports sharp drop in profit in 2023
- Lower oil prices offset higher sales volumes
- Gross oil production from Jubilee field below expectations due to water injection issues
- Jubilee gas processing upgraded to increase capacity
- Planned shutdown in July to improve asset integrity and reduce flaring
- Net gas production in Ghana marks first commercialization of associated gas from Jubilee field
- Five new Jubilee wells scheduled to come on stream in 2024
- Drilling program expected to be completed ahead of schedule
- Drilling break planned in Ghana with resumption in 2025
- Existing well stock and upgraded water injection capacity sustain production at Jubilee and TEN fields
Tullow Oil reported a sharp drop in profit in 2023, primarily due to lower prices for oil sold, which offset the higher sales volumes. The gross oil production from the Jubilee field was below expectations, mainly because of water injection reliability challenges and a delayed start for Jubilee South East. However, these issues were resolved in the fourth quarter of 2023, with upgraded capacity delivering record water injection rates and observable pressure response in the reservoirs, which will benefit production in 2024 and beyond. Jubilee gas processing was also upgraded, increasing the capacity to produce oil from wells with higher associated gas content. In 2023, a planned shutdown was carried out to improve asset integrity, enhance production through improved liquid recovery from gas, and reduce flaring. Net gas production in Ghana marked the first commercialization of associated gas from the Jubilee field. Looking ahead, Tullow Oil has plans to bring five new Jubilee wells on stream in 2024, with the current drilling program expected to be completed ahead of schedule. A drilling break is planned in Ghana, with drilling set to resume in 2025. During this time, Tullow Oil will optimize its plans for the next phase of investment in Ghana, while the existing well stock and upgraded water injection capacity sustain production at the Jubilee and TEN fields.
Factuality Level: 8
Factuality Justification: The article provides specific details about Tullow Oil’s production, including challenges faced, upgrades made, and future plans. The information is presented in a straightforward manner without any obvious bias or sensationalism. The article focuses on factual information related to the company’s operations and financial performance.
Noise Level: 3
Noise Justification: The article provides detailed information about Tullow Oil’s operations, production, challenges, and future plans. It stays on topic and offers insights into the company’s strategies and developments. However, it lacks broader analysis, accountability of decision-makers, or exploration of long-term trends in the oil and gas industry.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets may be impacted by the sharp drop in profit reported by Tullow Oil due to lower oil prices. Investors and shareholders may react to this news, potentially affecting the company’s stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events or their impact.
Public Companies: Tullow Oil (TULL)
Key People: Christian Moess Laursen (Author)
Reported publicly:
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