Ghana Considers Cutting Jubilee Output 10 Percent Or Flaring Gas
Ghana is discussing with the operators of the offshore Jubilee field to cut crude output by about 10 percent or flare gas to reduce the amount of gas 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 (TLW) 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.
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