Tullow Oil is planning to boost production in Ghana in the coming years as part of its new strategy to improve the company’s fortunes.
In a statement issued last week, the company said it will launch a multi-well drilling programme in the second quarter of 2021 under the first phase of its investment agenda.
The programme is expected to boost production and lower operational costs.
“This plan, alongside a rigorous focus on costs, is expected to generate material cash flow over the next decade, which the group anticipates will enable reduction of its current debt levels,” Tullow explained.
Tullow said it has produced just 400m barrels of oil (gross) from 2.9bn barrels of oil in place in Ghana so far, representing 14 percent of potential production.
It added that the new plan will deliver production growth in the medium term and the ability to sustain production over the longer term.
The plan is expected to generate US$7bn of operating cash flow over the next 10 years, with 90 percent of the company’s future capital expenditure earmarked for its West African producing assets.
“The plan focuses our capital on a deep portfolio of short-cycle, high-return opportunities within our current producing asset base and will ensure that Tullow can meet its financial obligations and deliver material value for our host nations and investors,” Rahul Dhir, Tullow CEO, said.