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Tullow to invest $400 million in Ghana project
Tullow Oil plans to invest $400 million this year, mainly on its flagship fields in Ghana, the independent oil and gas exploration and production group announced this on Wednesday.
Forecasting its capital expenditure for this year, Tullow said it would invest $300 million in Ghana, $40 million in Gabon, $20 million in Côte d’Ivoire, $10 million in Kenya and $30 million on exploration and appraisal activities.
The company expects free cash flow to come in at $100 million at an oil price of $80 a barrel, or twice that at $100 a barrel, unchanged from previous guidance.
For 2022, free cash flow came in at $267 million, up from $245 million in 2021 and in line with forecasts.
Expatiating on the 2023 outlook for Ghana, Tullow said “completion of Jubilee South East infrastructure in the first half of 2023 will mark the end of the current major infrastructure spend on Jubilee.”
Gross production from Jubilee expected to increase to over 100 kbopd with four new wells at Jubilee South East and a further Jubilee producer onstream later this year.
Tullow forecast decommissioning expenditure of $90 million in the UK and Mauritania, with a further $20 million placed into escrow funds for future decommissioning in Ghana and parts of the non-operated portfolio.
“Decommissioning expenditure is weighted more than 80 per cent to the first half of the year,” Tullow said.
According to the oil company, Jubilee FPSO operations and maintenance (O&M) costs were expected to be 23 per cent lower than in 2021, following O&M transformation undertaken in 2022.
Tullow said it plan to go into a long-term gas sales agreement with the Government of Ghana covering both Jubilee and TEN fields.
Commenting, Mr. Rahul Dhir, Chief Executive Officer, Tullow Oil plc said: “2022 saw Tullow successfully deliver against our business plan.
“A high focus on cost control and a disciplined approach to operational efficiency have driven a very strong performance for the year, with group production in line with guidance and expectations, delivering free cash flow of $267 million, lowering net debt to $1.9 billion and reducing cash gearing to 1.3x net debt to EBITDAX.”
He said, “looking ahead, we have multiple catalysts to deliver further profitable growth. There is strong momentum across the portfolio with the commissioning of Jubilee South East on track for the second half of 2023, bringing undeveloped reserves online and Jubilee gross production to more than 100 kbopd before the end of the year.
“Engagements to secure a strategic partner for the Kenya development project continue and we are preparing a plan of development to monetise the remaining resources at TEN.
“We have created a unique platform of assets and capability, including industry leading safety performance, which positions us strongly to create significant value for all our stakeholders.”
Member of Parliament for Akuapem North, Sammy Awuku, has expressed deep sorrow following the sudden passing of Isaac Batsa, the constituency secretary for the opposition National Democratic Congress (NDC).
The New Patriotic Party (NPP) lawmaker issued a statement on Tuesday reacting to the news, which has shocked the local political community.
Mr.Awuku praised the late NDC secretary for his bipartisan approach to local governance.
He noted that despite their different political affiliations, Batsa consistently rose above party lines to serve the constituency with diligence.
The MP revealed that the news was particularly shocking given that he had last interacted with Batsa just three days prior on Saturday.
Concluding his statement, Sammy Awuku extended his heartfelt condolences to Batsa’s family, the constituency and regional executives, and the entire NDC fraternity, wishing the deceased peaceful eternal rest.
By Edem Mensah-Tsotorme
The New Patriotic Party (NPP) has petitioned the Dean of the Diplomatic Corps to intervene in what it describes as the unlawful arrest and detention of the Bono Regional Chairman of the party, Kwame Baffoe, popularly known as Abronye DC.
Speaking during the presentation of the petition, NPP Member of Parliament, Jerry Ahmed Shaib accused the government led by John Dramani Mahama of promoting what he described as a “culture of silence.”
According to him, the continued detention of Abronye DC over a bailable offence was unacceptable and against the principles of justice.
He argued that keeping an accused person in custody until a matter is fully determined was not common practice in democratic states.
“It can only happen in a kangaroo or banana state,” he stated.
Mr. Shaib further alleged that state institutions were being influenced to intimidate political opponents.
He maintained that the criminal libel law had long been repealed in Ghana and questioned why individuals were allegedly being targeted over comments on national issues.
According to him, citizens should not be arrested simply for expressing views, including claims that power outages, popularly known as “dumsor,” had returned.
The lawmaker also accused the presiding judge in the matter of showing bias and claimed the court had failed to indicate when Abronye DC would reappear or be released.
He explained that the NPP deliberately chose a peaceful approach in presenting the petition to the diplomatic community instead of organising demonstrations.
Mr. Shaib noted that the delegation was acting on the instructions of the party leadership, including the Minority Leader, the General Secretary, the National Organiser, and former Vice President Mahamudu Bawumia.
He called on the diplomatic community and ambassadors in the country to engage the Ghanaian authorities and ensure that justice and human rights were upheld.
By: Jacob Aggrey
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