Tullow Oil PLC says it hopes to secure approval in the third quarter of this year to commence work on a second field TEN.
TEN is estimated to have oil reserve estimates of between 200 million and 1.2 billion barrels.
Speaking to journalists shortly after the first- ever investor forum organised by Tullow Ghana Limited (TGL) to update its shareholders on the performance of the company for the 2011 financial year, Aidan Heavey, Chief Executive Officer, Tullow Oil PLC said the company expects to produce 100,000 barrels-per-day from the TEN field.
He said during 2011, good progress was made in appraising the TEN discoveries in the country.
On the phase 1A development of the Jubilee field he said it was sanctioned in January 2012 and drilling of the first production well commenced on schedule in February.
“This development will be conducted over an 18 month period and the total cost is expected to be approximately $ 1.1 billion. In 2012, the Group expects to deliver total net production of 78,000 to 86,000 barrels per day,” he said.
On oil production from the Jubilee field he said it was likely that the company would hit the 120, 000 production target in 2013.
In 2011, gross production from the jubilee field averaged 66,000 barrels per day, reaching 88,000 barrels per day before declining to approximately 70,000 barrels per day at the end of the year.
"We are currently doing around 70,000 barrels per day and while doing that we are also looking at various ways of enhancing the production to around 90,000 barrels by the end of this year and probably ramp up to 120,000 barrels next year," Mr. Heavey said.
He attributed the shortfall in production target to technical problems which efforts were underway to address it.
"We are sure one of the options we have will solve the problem for the long term to enable production progress," he said.
Tullow he said was expecting to spend about $400 million to address the technical challenges.
"The cost could be cheaper, depending on which option works out well at the end of the day, but we estimate to spend about $400 million maximum on this," he said.
Answering a question on how the company to promote local content in its operations Ike Duker, Executive Chairman, Tullow Ghana Limited said the issue was at the heart of the company’s operations because of its commercial advantages.
He said local capacity building and capability development helps to ease access to local raw materials for the company whilst creating shared prosperity in the country.
He said an entire department to focus only on local content had been established demonstrating the company’s commitment to local content.
Tullow holds a 36.05 percent stake in Jubilee. Other shareholders include state oil firm GNPC with 13.75 percent, private investment group Kosmos with 23.49 percent, Anadarko Petroleum Corp with 23.49 percent, and Sabre Oil and Gas with 2.81 percent.
The Jubilee field began production in December 2010 with reserves estimated to be up to 1 billion barrels. Around 33 million barrels have been produced so far.