Tullow's Jubilee Development Will Cost $4B
Tullow Oil's recent offshore discovery in Ghana, called Jubilee, will cost about $4 billion to develop into an oil-producing field said Tom Hickey, Tullow's chief finance officer, according to AFX News.
Jubilee is reported to hold between 500 million and 1.3 billion barrels with 170 million barrels of recoverable resources and is Tullow's biggest discovery to date.
Tullow's 35-37% stake in the project means that its share in the $4 billion needed will be about $1.3 to $1.4 billion, $100 million of which will be invested this year. The remaining percentage in the project is held by Kosmos Energy and Anadarko Petroleum Corp.
Once the field has been fully developed, it should produce about 150,000 barrels a day, according to Hickey.
This year, Tullow plans to drill seven wells to confirm the estimated resource potential and to better understand how to develop it. Depending on the outcome of this drilling, Jubilee could be on stream before 2012.
While Tullow tries to focus on Jubilee and Lake Albert, another key project, Hickey said that Tullow may sell some of its "less material" assets.
"Assets in which Tullow has small interests or 15-20 million boe discoveries will be candidates for selling," Hickey said.
Last year for example, Tullow sold off its 40% interest in an offshore oil block in Cameroon to the Hungarian oil group AMOL. Tullow's assets in Pakistan have also sparked some interest.
In response to speculations of takeover, Hickey stressed, "There are no predators looming on the horizon."
Tullow announced in an advance statement and operations update that it had a 13% growth in productions to 73,100 boepd in 2007.
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