GHANA: Tullow Oil Operational Update

Jubilee

Gross oil production from the Jubilee field averaged 72.4 kbopd (net: 28.2 kbopd) in the first half of the year. This was slightly below expectations largely due to reduced water injection in late 2022 and into the first quarter of 2023, which has since been rectified in February 2023. In addition, Jubilee South East starting up in July has shifted the tie in and contribution of new wells to slightly later than planned. While this timing impacts the full year forecast, the anticipated ramp up remains unchanged and the field is expected to exit the year over 100 kbopd, as initially forecast at the start of 2023. Full year 2023 gross oil production from Jubilee is expected to average c.90 kbopd (net: c.35 kbopd), reduced from c.95 kbopd gross (net: c.37 kbopd).

Four wells have been brought on stream year to date – a Jubilee main producer in May, two JSE producers in July and another JSE producer this month. Two further wells – both water injectors – are scheduled to be brought on stream before year end. The wells are performing in line with expectations and the start-up of JSE has quickly increased gross production rates, with the field currently producing over 100,000 bopd. The start-up of JSE marks a significant milestone that underpins future growth and cash flow delivery, and the Group looks forward to continued project delivery.

Tullow and its partners aim to maintain the increased level of production at Jubilee through an ongoing infill drilling programme. The partnership has identified multiple future drilling locations and further opportunities to extend the plateau towards the end of the decade and realise the full potential of the significant Jubilee resource base.

TEN

Production from the TEN fields averaged 20 kbopd (net: 11 kbopd) during the first half of 2023, with improved pressure support from injection wells put online during 2021-22 resulting in negligible decline. Full year gross production remains c.20 kbopd gross (net: c.11kbopd). A planned shutdown was carried out in July and work was completed to improve asset integrity, enhance production through increased gas injection and higher liquids recovery, and reduce flaring in line with our Net Zero commitment. The TEN flare has reduced by around 50% compared to before the shutdown and with a plan to further reduce flaring at TEN into 2024.

Gas commercialisation

Net gas production in Ghana averaged 7.3 kboepd in the first half of the year. The Interim Gas Sales Agreement, initially valued at $0.50/mmbtu, was amended in July 2023 to a price of $2.90/mmbtu until the end of the third quarter of 2023. The commercialisation of Jubilee gas represents a new revenue stream for Tullow of c.$4 million per month, while commercial discussions continue for the long-term gas sales agreement. Full year net gas production in Ghana is expected to average c.7 kboepd.