Tullow’s TEN Project to Deliver First Oil ‘Shortly’
Tullow Oil-operated Tweneboa, Enyenra and Ntomme (TEN) project, located offshore Ghana, is expected to produce first oil ‘shortly’.
Kosmos Energy, Tullow’s partner in the project together with Anadarko, GNPC and PetroSA, confirmed on Monday Tullow’s recent statement that said first oil from the project was expected in early August.
Kosmos said that the start-up of the TEN project remains on schedule and on budget, and that the project is 99% complete.
To remind, at the end of June this year, Tullow informed it expected to deliver first oil within the following ‘three to six weeks’.
Kosmos also said on Monday that eight of the eleven previously drilled wells have now been completed. Hook-up and commissioning of the floating, production, storage and offloading (FPSO) vessel, the Prof. John Evans Atta Mills, connecting the pre-drilled wells to the vessel via the subsea infrastructure, is nearing completion, the company added.
A gradual ramp up in oil production towards the FPSO capacity of 80,000 bopd is anticipated around the end of 2016 as the facilities complete performance testing and well production levels are increased to optimal rates.
Kosmos stated that, per operator guidance, average annualized production from TEN in 2016 is expected to be approximately 23,000 bopd gross during the year, which equates to an average of approximately 55,000 bopd while it is online in 2016.
Kosmos deepens 2Q loss
The American oil company Kosmos also on Monday posted a deeper loss for the 2Q 2016 that totalled $108.3 million, compared to a net loss of $75.2 million in the same period last year.
Furthermore, the company’s revenues dropped in 2Q 2016 to $45.7 million, compared to $121.8 million in the prior-year quarter.
Kosmos’ total capital expenditures in the second quarter were $184 million, which primarily reflects spend on the company’s exploration and appraisal drilling program and the TEN project.
The company expects its capital expenditures to ramp down in the second half of the year as it paused the drilling program in late May and expects to see a reduction of TEN spending after achieving first production during the third quarter. The forecast for full-year 2016 capital expenditures remains approximately $650 million.
