Exploration company Tullow Oil has announced production has commenced from the TEN oil field of the shore of Ghana.
The first oil was reached on schedule and on budget three years after the development was approved in 2013.
The field is expected to ramp up to plateau production of 80,000 bpd for the rest of 2016, with gross production expected to average 23,000 bpd (11,000 bpd net to Tullow) this year.
The first oil flowed to the FPSO Prof John Evans Atta Mills - the floating, production, storage and offloading vessel named after the late President of Ghana.
Tullow Oil has a 47% share of the TEN development, with the field being developed at around $20 per barrel of oil with unit operating costs at around $18 per barrel.
In an investment note, Davy said: “Guidance for the performance of the field for the remainder of 2016 is unchanged, and the first cargo is expected toward the end of September.
“First oil from TEN de-risks the development project and means that the peak of the capital-intensive phase of the project is behind Tullow with cash generation around the corner.”
Company CEO Aidan Heavey said the development was “an important moment for Tullow as production begins from our second operated development in Ghana”.
