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Energy

Tullow Oil sees first oil from TEN project within six weeks

The explorer and producer expects TEN project to achieve first oil in next three to six weeks

Tullow Oil plc (LON:TLW) forecast the first oil from a project in West Africa and reported progress in overcoming problems on another scheme.

The explorer and producer said it expected the TEN project to achieve first oil within the next three to six weeks.

Tullow estimates TEN average annualised gross production in 2016 will be around 23,000 barrels of oil per day (bopd), or 11,000 bopd net.

Drilling is not expected to resume on the TEN field until after the resolution of a border dispute between Côte d'Ivoire and Ghana.

It said it was resolving issues with its floating production, storage and offtake (FPSO) vessel on the Jubilee field.

Production at Jubilee has stabilised with a gross rate in June of around 90,000 bopd.

In East Africa, governments' agreement that there will be separate pipelines to develop resources in Uganda and Kenya brings greater clarity to both projects, it said.

It added that in addition, in Kenya, a new programme of exploration wells focusing on increasing resources was due to start in the fourth quarter.

Chief executive Aidan Heavey said: "The new ventures team remains focused on high grading and replenishing the exploration portfolio with a new licence signed in Zambia and ongoing portfolio management and seismic survey activity in South America."

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