Jubilee, TEN FPSOs nearing nameplate capacity

Gross sales volumes from the Tullow Oil-operated Jubilee and TEN fields averaged about 156,900 b/d of oil during 3Q 2018, according to partner Kosmos Energy.

Offshore staff

DALLAS– During 3Q 2018, gross sales volumes from the Tullow Oil-operated Jubilee and TEN fields averaged about 156,900 b/d of oil, according to partner Kosmos Energy. Production in Ghana continues to grow following the Jubilee turret remediation work and the new wells brought online at both Jubilee and TEN during the quarter.

At Jubilee, production averaged about 94,300 b/d of oil for the quarter, delivering two cargos net to Kosmos, as expected. One new producer well at Jubilee was brought online in 3Q, with a second expected in 4Q. Production from these wells, together with enhancements to gas handling capacity, is expected to increase Jubilee production toward the FPSO nameplate capacity of 120,000 b/d of oil.

At TEN, production averaged approximately 62,600 b/d of oil for the quarter, delivering one cargo net to Kosmos, as expected. One new producer well at Ntomme came online in August. Kosmos expects this well to support current production levels of about 65,000 to 70,000 b/d of oil through the end of the year when a second new production well is scheduled to be brought onstream to increase production toward the FPSO nameplate capacity.

The TEN FPSO has previously been tested at rates above the 80,000 b/d of oil nameplate capacity, and Kosmos expects to further test this capacity in 2019 as additional wells come onstream.

The drillshipStena Forth, a second rig that arrived in September, is being used for drilling, with the current rig, Maersk Venturer, set up for a continuous completion program. Taking advantage of low rig rates in the current environment is expected to accelerate the addition of new wells in Ghana, increasing production toward FPSO capacity sooner, with the goal of achieving gross production from Jubilee and TEN of 180,000 to 200,000 b/d of oil over the next three years.

Offshore Equatorial Guinea, production averaged approximately 42,600 b/d of oil in 3Q, and with strong performance in the first half of the year, the company is on track to slightly exceed its gross 43,000 b/d of oil 2018 annual guidance. The installation of electrical submersible pumps to increase artificial lift capacity and enhance production is expected to begin early in 4Q.

During the quarter, Kosmos continued acquiring seismic over blocks S, W, and EG-21. The company will use processed seismic to high grade prospects for drilling planned in the latter part of 2019.

In partnership with BP, the company continues to make progress in Senegal and Mauritania with theTortue LNG development. The FEED work for Phase 1 is substantially complete. The unit development plan has been submitted to both governments, and the partnership has reached agreement with the governments of Mauritania and Senegal on the non-PSA fiscal terms for this cross-border project.

The Tortue project remains on track for Phase 1 FID around year-end 2018. With the non-PSA fiscal terms agreed, the partnership intends to submit the declaration of commerciality. The next key step is for the governments to grant the exclusive exploitation authorization which would enable FID. In parallel, the partnership is progressing the LNG offtake agreement.

Last month, Kosmos entered into a strategic exploration alliance with Shell Exploration Company B.V. to jointly explore in southern West Africa. Initially, the alliance will focus on Namibia, where Kosmos has completed the farm-in to Shell’s acreage in PEL 39, and Sao Tome & Principe where it has entered into exclusive negotiations for Shell to take an interest in Kosmos’ acreage in blocks 5, 6, 11, and 12.

In the Gulf of Mexico, at Odd Job (Kosmos 55% WI), a second development well was brought online in late September and connected to the Delta House floating production system (FPS). A third Odd Job well was drilled in May, exceeding pre-drill resource estimates, and is expected to start production through existing subsea infrastructure to the Delta House FPS by early 2020.

Gulf of Mexico production during the period fromtransaction close until the end of 3Q averaged about 24,200 boe/d.

As part of theGulf of Mexico transaction, the company acquired a portfolio of short-cycle growth assets, including a high-quality inventory of exploration prospects.

During 3Q, the Nearly Headless Nick prospect (Kosmos 21.95% WI), located in Mississippi Canyon block 387, was successfully drilled to a total depth of 5,807 m (19,052 ft) and encountered about 26 m (85 ft) of net pay in the Middle Miocene objective. Nearly Headless Nick will be developed as a subsea tieback and is expected to be brought online through the Delta House facility in 2020.

11/05/2018

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