Oil exploration firm, Tullow Oil says repair works on the Jubilee FPSO would now end in 2019, according to details in its half year results and statement issued to investors on July 26.
The report released by Tullow Oil showed that Turret Remediation Project should be carried out in three phases.
The first phase of this work, involving the installation of a stern anchoring system, was completed in February 2017, after which the tugs maintaining the FPSO on heading control were removed.
The FPSO is now anchored to the seabed with the turret bearing locked and the vessel held on a constant heading. The JV Partners and the Government of Ghana have agreed on the need to stabilize the turret bearing.
A shutdown of between five and eight weeks is planned for late 2017 with work continuing to further reduce the length of this shutdown.
Planning for the rotation of the vessel to its optimum heading and the installation of a deep water offloading system is ongoing and it is anticipated that this work will be executed in two stages in 2018 and 2019.
The total shutdown duration for stabilization, rotation and offloading system installation is not expected to exceed 12 weeks.
The capital costs associated with the remediation works, the lost revenue resulting from the shutdown periods, and the increased operating costs are expected to be covered by the JV Hull and Machinery insurance policy and Tullow’s corporate Business Interruption insurance policy.
It is not clear for now whether this move would result in some shutdowns on the jubilee field running into next year and even 2019.
Tullow earlier announced that it would shut the jubilee field for almost three months beginning this September.
Previous shut downs had resulted in a cut in gas supplies from the Jubilee infrastructure to the Atuabu gas processing plants which has become the main source of fuel for some generating plants in the country.
Some analysts have argued that the country could be faced with some challenges with power generation. This is because the state is yet to reach an agreement with Tullow oil on the price it should for gas exported to the Atuabo Gas processing plant.