In a move poised to invigorate the oil sector, UK-based Tullow Oil according to Brand Focus Africa is set to resume drilling operations in Ghana‘s oilfields by May 2025. This decision follows the resolution of a protracted tax arbitration dispute with the government, a settlement that lifts a considerable weight off Tullow’s financial shoulders.
The agreement effectively eliminates a $320 million contingent liability for Tullow and reaffirms the validity of its petroleum agreements within the country. This breakthrough is expected to boost Ghana’s oil production capabilities and reinforce its standing as a key player in the West African oil market.
Tullow Oil had temporarily paused drilling activities in the country in 2024, but with the tax dispute now resolved, the path is clear for increased investment and expanded operations. The company’s 2024 production from the Jubilee oil field was approximately 33.9 thousand barrels of oil per day (kbopd) net, while the TEN project yielded 10.2 kbopd net. In 2024, Tullow successfully introduced five new wells to the Jubilee oil fields.
Looking ahead, Tullow’s drilling programme in the country is slated to commence in May 2025, utilizing the Noble Venturer rig. The initial phase will focus on bringing two Jubilee wells,one producer and one injector online during the third quarter of 2025. After a maintenance break, drilling is scheduled to resume in early 2026, which should further increase production.
Throughout 2024, the FPSO uptime at both the Jubilee and TEN fields averaged an impressive 97%35. To optimize the 2025-26 development drilling program and improve understanding of reservoir dynamics, a 4D seismic survey is currently underway across the Jubilee and TEN fields.
The government has welcomed Tullow Oil’s decision to resume drilling and increase its investment in the country’s oil sector and has expressed commitment to creating a favourable business environment. Tullow Oil generated $1.5 billion in revenue in 2024, with an average realized oil price of $80.2 per barrel.
