THE Tweneboa Enyenra Ntomme (TEN) project offshore Ghana, initially expected to start production by mid-2016, has received a minor pushback as first oil is now expected by August 2016. The project is expected to add 80,000 barrels per day (bpd) to Ghana’s output when production commences. Eighty percent of the project production will be crude and 20 percent gas.
The project, which will see the development of three fields in the Deepwater Tano license, is operated by Africa-focused British E & P Company Tullow oil. The project is located at water depth of 5600ft offshore Ghana and will be produced via a FPSO that is nearing completion in Singapore. The FPSO, named after Ghanaian former president Atta Mills, is expected to reach Ghana by February 2016.
The project will develop 300 million barrels of recoverable reserves over 20 years. The project is progressing despite concerns over the drop in oil price affecting the operation of Tullow oil, which is the project’s majority shareholder with 47.18 percent. The additional income from the project is crucial for both Tullow and the Ghanaian government. The Ghanaian economy has faced major financial challenges in recent times that have resulted in the government turning to IMF for a $1bn loan and issuing another $1bn Eurobond at a significant premium to its peers. Tullow oil also slipped into loss position in 2014FY and had to cancel its full year dividend.