Business News of Wednesday, 16 May 2012Source: citifmonline.com Tullow Oil has described as encouraging initial results of a program to boost productivity at the Jubilee Oil Field to the initial 120,000 barrels of oil per day.

This is contained in the company’s operational update in a press release copied to Citi Business News. Tullow Oil, reiterated that the projected 120,000 barrels of oil per day would be reached in early 2013.

According to the lead operator on the Jubilee field, production on the Jubilee Field has produced 33 million barrels of oil after 34 liftings.

The report said in 2012 to date, Jubilee Field production has averaged approximately 67,000 barrels of oil per day but this is likely to change early next year.

Tullow said some of the initiatives it has taken to get the field producing oil at its maximum capacity, is to reposition some of the wells producing the oil and installing an alternative completion design in one of the affected wells.

Gross production is therefore expected to average between 70,000 and 90,000 barrels of oil per day in 2012 and field capacity is expected to be reached in early 2013.

Technical work on the TEN development, which includes the FPSO design competition, subsea FEED and associated tendering is progressing to plan. The schedule to submit the Plan of Development to the Minister of Energy is on track for submission during the third quarter.

First production is expected approximately 30 months after receipt of Government approval. The only bad news perhaps is when the partners failed to find any oil in the Teak-4 appraisal well in the West Cape Three Points license and had to abandon it.

Government approval for the Phase 1A development was received in January and will include five additional producing wells and three injection wells. The first well was drilled in April and first production from the Phase 1A development is expected in the fourth quarter of 2012.

In the West Cape Three Points licence, the Teak-4 appraisal well encountered thin non-commercial reservoirs and the well has been plugged and abandoned. Discussions are on-going in relation to further appraisal and development plans for the Mahogany, Teak, Akasa and Banda discoveries.

In the Deep Water Tano licence, excellent progress was also made on the TEN appraisal programme over the period with three wells drilled. Enyenra-4A, a down-dip appraisal well encountered good oil bearing sands and proved a continuous oil column in the Enyenra field of approximately 600 metres. Owo-1RA, the re-drill of the original Enyenra discovery well, was tested during the period at a co-mingled rate of approximately 20,000 bopd and Ntomme-2A, a down-dip appraisal well, discovered high quality oil bearing reservoirs.

Technical work on the TEN development, which includes the FPSO design competition, subsea FEED and associated tendering is progressing to plan. The schedule to submit the Plan of Development to the Minister of Energy is on track for submission during the third quarter. First production is expected approximately 30 months after receipt of Government approval.**