LONDON (ShareCast) – (ShareCast News) – Tullow Oil (LSE: TLW.L – news) said gas exports from its Jubilee field in Ghana have resumed following the completion of works on a gas compressor and oil production has now returned to previous rates. The oil and gas exploration group also said that the governments of Uganda and Kenya have agreed on a route for the regional crude oil export pipeline.
Tullow said this was a major milestone “and the company looks forward to working with the governments and partners on development of the significant discovered oil resources in Uganda and Kenya”.
In addition, Tullow said the Spari-1 well in Suriname is currently being plugged and abandoned as no significant hydrocarbon shows were encountered.
In Norway, the Salander well found sandstones with good reservoir properties but no hydrocarbons were encountered. The well was drilled in 350 metres of water to a total depth of 2,439 metres and will be plugged and abandoned, the company said.
Chief executive officer Aidan Heavy said: “Tullow continues to make good progress in 2015 having reset the business and with continued emphasis on managing costs, capital expenditure and the balance sheet.
We are also focused on operational efficiency and the Jubilee compressor issue has been resolved ahead of schedule. With production back to normal at Jubilee, we expect to meet our full year production guidance. Looking forward, we plan to further deleverage the business as we look at non-core assets and our retained equity in our major developments (Other OTC: UBGXF – news) .”
