2011 Annual Report PDF - Tullow Oil plc

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WEST &
NORTH AFRICA
SOUTH &
EAST AFRICA
EUROPE,
SOUTH AMERICA
& ASIA
BUSINESS REVIEW
2011 Total 2011 Total
Countries (with EDP) 9 Countries (with ED) 6
Licences 42 Licences 18
Employees 374 Employees 297
Acreage (sq km) 66,425 Acreage (sq km) 151,677
E&A wells 22 E&A wells 9
Successful E&A wells 16 Successful E&A wells 8
Development wells 59 Development wells 0
Production (boepd) 57,400 Production (boepd) 0
2011 Total
Countries (with EDP) 7
Licences 47
Employees 154
Acreage (sq km) 57,793
E&A wells 4
Successful E&A wells 2
Development wells 1
Production (boepd) 20,800
1 Ghana
66,000 bopd produced
In 2011, gross production from the Jubilee
field averaged 66,000 bopd (2010: 3,200 bopd),
However, production from the field was below
expectations due to reduced productivity in a
number of wells related to problems with the
original well completion design. The issue is
not expected to impact the level of field reserves
or resources and a remedial work programme
is under way to regain well productivity lost
to date.
2 Mauritania
New C-10 exploration licence
Tullow became the Operator of a new deepwater
licence, offshore Mauritania, where the Group
sees potential to extend the successful
Jubilee play along the coastline from Ghana.
3 Liberia & Sierra Leone
Three-well exploration campaign
In November 2011, the Montserrado exploration
well offshore Liberia was drilled and made a
non-commercial oil discovery. Following the
well in Liberia, the rig moved to Sierra Leone
to drill the Jupiter-1 exploration well which
finished in February 2012. The well encountered
30 metres of net pay in multiple zones, The
Mercury-2 well is currently drilling.
4 Côte d’lvoire
Two exploration wells
Following the lifting of Force Majeure for both
deepwater exploration blocks, the plan to drill
one well in each block was reactivated. The
Eirik Raude rig was released from Ghana and
commenced drilling the Kosrou prospect
(CI-105) in February 2012. This will be
followed by the drilling of the high-impact
Paon prospect (CI-103).
5 Uganda
$2.9 billion farm-down
On 3 February 2012, Tullow signed two
Production Sharing Agreements (PSAs)
relating to the Lake Albert Rift Basin with
the Government of Uganda. This enabled
Tullow and its new partners to complete
the farm-down on 21 February 2012, and
operatorship responsibilities within the basin
will be divided between the Partners. Total will
operate Exploration Area-1 (EA-1) and Tullow
will operate Exploration Area-2 (EA-2). In the
former Exploration Area-3A, CNOOC will
operate the new Kanywataba licence
and the Kingfisher production licence.
6 Kenya and Ethiopia
Exploration drilling commences
A Full Tensor Gradiometry (FTG) Gravity Survey,
acquired across most of the Kenya-Ethiopia licence
blocks, covering an area of around 100,000 sq km,
has been completed and processed. The data
quality is excellent and there are strong similarities
with the successful FTG survey acquired in Uganda
in 2009. The Ngamia well in Block 10BB in Kenya,
which has an anticipated depth of 2,700 metres,
spudded on 25 January 2012.
7 Namibia
Kudu gas field
A new Kudu Petroleum Agreement was signed
in October 2011 and a 25 year Production
Licence was issued by the Minister of Mines
& Energy in November. The Upstream Joint
Operating Agreement, Project Development
Agreement and Gas Sales Agreement Heads
of Terms are being progressed and when
concluded will allow the development to
proceed to sanction. An investment decision
is targeted for late 2012.
8 French Guiana
72 metres net pay
In September 2011, the Zaedyus-1 exploration
well made a significant oil discovery offshore
French Guiana, encountering 72 metres of net
oil pay in two turbidite fans. This is the first well
in Tullow’s extensive Guyanas acreage and
successfully opened a new basin. Shell took over
operatorship of the block on 1 February 2012.
9 Netherlands
€300 million acquisition
In May 2011, Tullow significantly enhanced
its Dutch portfolio though the acquisition
of Nuon Exploration & Production from the
Vattenfall Group for a cash consideration
of €300 million ($432 million). This is a
non-operated portfolio of gas producing
fields, a range of exploration opportunities
and an equity interest in infrastructure.
10 United Kingdom
12,500 boepd production
Net production from the UK assets in 2011 was
in line with expectations averaging 12,500 boepd
(2010: 13,300 boepd). These mature fields
performed well, with high production efficiency
despite their natural decline.
11 Bangladesh
100 mmscfd gross production
Gross production from the Bangora field in
2011 was just over 100 mmscfd and 325 bpd
of condensate. In March 2012, Tullow
commenced a process to divest its Asian assets.
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