Tullow Oil is preparing to restart drilling in Ghana after resolving a long-running tax dispute with the government. The issue had created uncertainty for the company, but with the matter settled, Tullow can now focus on increasing production and improving operations.
The company plans to begin drilling in May 2025 using the Noble Venturer rig. The first phase includes drilling two new wells in the Jubilee field, one for production and one for water injection.
These wells are expected to start producing by the third quarter of 2025, which will help boost overall output. Tullow is also working on ways to manage production declines, which have been a concern for investors.
To prepare for drilling, Tullow has increased the water injection capacity at the Jubilee field to 300,000 barrels per day. This helps maintain pressure in the reservoir and supports stable production levels.
The company is also conducting a 4D seismic survey in the Jubilee and TEN fields to find the best locations for future drilling and to improve understanding of how fluids move underground.
Tullow’s CEO, Rahul Dhir, is optimistic about the company’s progress. In recent years, Tullow has focused on improving operations and cutting costs, which has helped reduce net debt from $2.81 billion to $1.45 billion.
This financial improvement strengthens the company and puts it in a better position for future growth.
Settling the tax dispute also removed a $320 million financial risk from Tullow’s accounts. With this burden lifted, the company can invest more in local economies and support community programs.
Tullow aims to help local communities by funding projects that protect the environment and create economic opportunities.
For people living near Ghana’s oilfields, the return of drilling means more jobs and business activity. Increased investment in the oil sector can create employment in construction, transportation, and other industries.
As operations expand, there may also be improvements in infrastructure such as roads and public services.
Tullow’s approach to cost control and sustainability could also influence other companies in the oil industry. The company has set a goal of reaching net-zero emissions by 2030.
If successful, it could encourage other firms to adopt similar strategies that reduce environmental harm while improving efficiency.
Tullow’s decision to restart drilling is an important step for the company and Ghana’s oil sector.
With plans to increase production and support local development, Tullowis in a strong position to shape the country’s energy future. Investors, governments, and communities will be watching closely as these efforts move forward.
