African-focused oil group Tullow has been urged by the Ghanaian government to cut output from the giant Jubilee field – despite the firm facing $100million in lost revenue.
The British firm and its partners in the field, which was discovered by Tullow seven years ago, have been urged to flare gas or cut output by around 10% from the field.
It comes as Ghana’s government looks at ways of reducing the amount of fuel reinjected into the reposit, which is thought to have around 2billion barrels of oil.
“We are looking at the economics of either flaring gas or cutting production to save the reservoirs,” said Ghana’s deputy petroleum minister Benjamin Dagadu.
“A decision will definitely be taken by end of the month.”
The country could ship gas directly to thermal plants and bypass the as-yet unopened gas plant set up to serve the field – the latest in a series of technical problems to hit the field in recent years.
Tullow admitted last month it could lose up to $100 million in revenue this year thanks to the production limits at Jubilee, which come after recent problems with the field’s FPSO.
Jubilee, which began production in 2010, has Tullow as its largest share holder with 35.5 percent of the field.
U.S.-based Anadarko Petroleum Corp. and Bermuda-based Kosmos Energy Ltd. each hold 24.1 percent. Ghana National Petroleum Corp. holds 13.6 percent and Sabre Oil & Gas Holdings Ltd. owned 2.7 percent.
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