Feb. 17 (Bloomberg) -- Ghana is in talks with the operators of the offshore Jubilee field about cutting crude output by about 10 percent or flaring gas to reduce the amount of the fuel reinjected into the deposit.
The government is also considering shipping the gas directly to thermal plants in Takoradi, bypassing a gas plant that has yet to open, Deputy Petroleum Minister Benjamin Dagadu said today by phone from Accra, the capital. Tullow Oil Plc is reinjecting gas at the field, limiting production to about 100,000 barrels of oil a day.
“We are looking at the economics of either flaring gas or cutting production to save the reservoirs,” Dagadu said. “A decision will definitely be taken by end of the month.”
Tullow said last month it will probably lose $100 million in revenue this year at it limits production at Jubilee. The start of gas shipments from Jubilee has been delayed by at least a year as a processing plant remains unfinished, forcing Tullow to inject the fuel back into the reservoir.
Jubilee, which began production in 2010, has Tullow as its largest share holder with 35.5 percent of the field. U.S.-based Anadarko Petroleum Corp. and Bermuda-based Kosmos Energy Ltd. each hold 24.1 percent. Ghana National Petroleum Corp. holds 13.6 percent and Sabre Oil & Gas Holdings Ltd. owned 2.7 percent.
Tullow rose 0.3 percent to 771 pence in London.
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