Hess Begins Pre-Development Studies As Tullow Pares Back
BMI View: After a seventh consecutive discovery, independent Hess announced not only that it would submit an appraisal plan to regulators by mid - 2013, but that it had already launched pre-development studies on its Cape Three Points Block. Following a fall in the production target for the TEN development, which is awaiting regulatory approval, Hess' move is a vote confidence in Ghana's offshore potential.
Following its seventh consecutive discover y at the Deepwater Tano / Cape Three Points (CTP) block offshore Ghana, US independent Hess has announced it has already started pre-development st udies. With the latest strike Hess encounter ed 12m of net oil pay and - leveraging its' extensive experience in geologically similar Equatorial Guinea - reported it would submit appraisal plans to the government of Ghana by June 2 2013. If appraisal is successful, the CTP licen c e could join Jubilee and possibly the Tweneboa-Enyerna-Ntomme (TEN) block as oil producing field's offshore Ghana.
Proving up the CTP block's potential comes at a welcome moment for Ghana's nascent oil industry, with the development of the Tullow- and Kosmos-led TEN projects awaiting regulatory approval. Tullow recently confirmed a downward revision to peak production from TEN, from an initial estimate of 100,000 barrels per day (b/d) to 80,000b/d. Tullow exploration director Angus McCoss told Upstream in February that the lower 80,000b/d target was 'the most valuable development that we've been able to identify'. The development plan was submitted to regulators in Ghana and first production is targeted for early 2015 - with peak output reached by 2018. The US$4.5bn project does not include the cost of a floating production and offloading unit (FPSO).
|New Production Necessary To Maintain Growth|
|Ghana Oil Production, Consumption & Net Exports ('000b/d)|