Tullow Oil Plc said a new project off Ghana will produce its first crude in early August as the African-focused explorer announced the completion of a three-year long development of the project, according to Sunday Business Post.
Production at the Tweneboa-Enyenra-Ntomme project (TEN), will gradually increase to 80,000 b/d by the end of this year. TEN will help offset lower output from Tullow’s flagship Jubilee field off Ghana, which suffered a technical issue on its floating production, storage, and offloading vessel.
Tullow CEO, Aidan Heavey, said in a statement: “The start of production from the TEN field in early August will be transformational for the group.” The new project will allow the company “to significantly increase our net production and begin the process of deleveraging our balance sheet.”
Tullow’s shares gained the most this month as the explorer reported first-half net income of $30m after a loss of $68m a year earlier. Net debt rose almost a third to $4.72b, according to The Nerve Africa.
In June, Tullow cut its West African production guidance for 2016 to between 62,000 and 68,000 b/d, down from a previous forecast of 73,000 to 80,000 b/d.