Tullow has disclosed that through the concerted efforts of its joint venture partners, the company has agreed on an amendment to the Interim Gas Sales Agreement in Ghana. This is according to recent announcement made by Tullow on behalf of the partners
The amended agreement is valued at $2.90/mmbtu, utilising the price for Jubilee gas referenced in the 2017 Jubilee Plan of Development. This agreement is expected to continue until the end of the third quarter of 2023. An agreement on acceptable commercial terms for export of future long-term volumes of Jubilee and TEN gas is in progress for completion by that time.
In his recent comment in July Dr Matthew Opoku Prempeh, Minister of Energy, Ghana stated that the approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 has paved way for investment in the development of the Jubilee South East (JSE) project, which has now culminated in the delivery of the First Oil from the JSE area.
The first JSE production well has been brought onstream and a further two producers and one water injector are expected onstream this year to help sustain gross Jubilee production over 100,000 bopd. Tullow and its partners plan to maintain this increased level of production at Jubilee over the next few years through an ongoing infill drilling programme
The government of President Ghana, Nana Addo Dankwa Akufo-Addo has also reiterated his support to work with all our strategic partners with a view to leveraging the country’s God-given resources for the ultimate benefit of our people.
The Current export volumes are placed at c.100 mmscf/d. The pricing remains lower than the weighted average price of other sources of gas in Ghana, underscoring Tullow’s commitment to the economic development of its host nation. “This amendment highlights the positive deliberations and collaboration with the Government of Ghana and our joint venture partners. Significant progress has been made and we look forward to continuing our discussions to secure a long-term gas sales agreement in Ghana, which will be an important catalyst for future investment and provide a long-term source of competitively priced energy for Ghana,” Wissam Al-Monthiry, Ghana Managing Director, commented.
