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Tullow to invest $400 million in Ghana project
Tullow Oil plans to invest $400 million this year, mainly on its flagship fields in Ghana, the independent oil and gas exploration and production group announced this on Wednesday.
Forecasting its capital expenditure for this year, Tullow said it would invest $300 million in Ghana, $40 million in Gabon, $20 million in Côte d’Ivoire, $10 million in Kenya and $30 million on exploration and appraisal activities.
The company expects free cash flow to come in at $100 million at an oil price of $80 a barrel, or twice that at $100 a barrel, unchanged from previous guidance.
For 2022, free cash flow came in at $267 million, up from $245 million in 2021 and in line with forecasts.
Expatiating on the 2023 outlook for Ghana, Tullow said “completion of Jubilee South East infrastructure in the first half of 2023 will mark the end of the current major infrastructure spend on Jubilee.”
Gross production from Jubilee expected to increase to over 100 kbopd with four new wells at Jubilee South East and a further Jubilee producer onstream later this year.
Tullow forecast decommissioning expenditure of $90 million in the UK and Mauritania, with a further $20 million placed into escrow funds for future decommissioning in Ghana and parts of the non-operated portfolio.
“Decommissioning expenditure is weighted more than 80 per cent to the first half of the year,” Tullow said.
According to the oil company, Jubilee FPSO operations and maintenance (O&M) costs were expected to be 23 per cent lower than in 2021, following O&M transformation undertaken in 2022.
Tullow said it plan to go into a long-term gas sales agreement with the Government of Ghana covering both Jubilee and TEN fields.
Commenting, Mr. Rahul Dhir, Chief Executive Officer, Tullow Oil plc said: “2022 saw Tullow successfully deliver against our business plan.
“A high focus on cost control and a disciplined approach to operational efficiency have driven a very strong performance for the year, with group production in line with guidance and expectations, delivering free cash flow of $267 million, lowering net debt to $1.9 billion and reducing cash gearing to 1.3x net debt to EBITDAX.”
He said, “looking ahead, we have multiple catalysts to deliver further profitable growth. There is strong momentum across the portfolio with the commissioning of Jubilee South East on track for the second half of 2023, bringing undeveloped reserves online and Jubilee gross production to more than 100 kbopd before the end of the year.
“Engagements to secure a strategic partner for the Kenya development project continue and we are preparing a plan of development to monetise the remaining resources at TEN.
“We have created a unique platform of assets and capability, including industry leading safety performance, which positions us strongly to create significant value for all our stakeholders.”
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ICU holds Greater Accra regional youth, women confab
The Industrial and Commercial Workers Union (ICU) on Friday held the Greater Accra Regional Youth and Women’s Conference to build a strategic network.
The conference which brought together representatives of the Union was a great opportunity for ICU Ghana to make its voice heard on policies that were crucial to the development of the country.
The platform was also used to elect new officers for the Greater Accra Branch of The ICU Ghana to mark its 12th National Quadrennial Conference in August.
The General Secretary of the ICU Ghana, Mr Morgan Ayawine, called on government to assist the two state-owned media organisation, New Times Corporation (NTC), publishers of The Spectator and The Ghanaian Times newspapers and Graphic Communication Group Limited (GCGL).
“The two state-owned media played major roles in disseminating government policies, educating, entertaining and informing the public of the happenings in the world,” he added.
He said ICU Ghana would also raise issues about the recapitalisation of the two organisations with the sector minister.
Mr Ayawine disclosed that the ADB and NIB banks were also going through the same ordeal but government intervened and urged government to do same for the two state-owned organisations.
He stressed on equal partnership between unions and employers, saying the capital and labour were crucial to create, produce and generate funds.
The General Secretary advised the various branches of the association to suggest solutions on socio-economic issues such as employment for discussions.
The newly-elected members who were sworn in by the General Secretary, Mr Morgan Ayawine includes Belinda Cochrane-chairman, Eric Ekow Turkson-Vice chairman and Moses Kwaku Otoo-Secretary.
Others were Charles Akomea-Financial Secretary, Charles Biden- Executive Member, Diana Asiedu-Women’s Representative and Samuella A. Brago-Youth Representative.
The chairman of the Greater Accra Branch of the ICU Ghana, Belinda Cochrane thanked the leadership for contributing to the success of the union.
She added that the conference was to prepare for the 12th National Quadrennial Conference and also to take stock of the activities of the branch for the past years and discuss issues on the ground.
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Minister for Health holds emergency stakeholder meeting with principals and directors of Health Training Institutions
In a proactive move to strengthen collaboration within the health sector, the Minister for Health, Kwabena Mintah Akandoh, has convened an emergency meeting with the Conference of Heads of Health Training Institutions (COHHETI) across the country.
The meeting aimed to deepen engagement between the Ministry and key stakeholders responsible for training health professionals.
The session provided a platform for open dialogue on the challenges facing health training institutions, the quality of healthcare education, and the strategic direction of human resource development in the sector.
Addressing the stakeholders, Mr. Akandoh emphasized the importance of fostering strong and cordial relationships between the Ministry and training institutions to ensure a well-coordinated and responsive healthcare system.
He indicated that the purpose of the meeting was also to collaborate, discuss concerns, and find practical solutions that would benefit not only the institutions but also the Ghanaian people who rely on the healthcare system.
The President of COHHETI, Madam Margaret Mary Alacoque welcomed the initiative, describing it as timely and necessary. She raised concerns about transportation challenges, accreditation delays, staffing shortages, and the general conditions and status of service for Health Training Institutions (HTIs). She also shared innovative strategies that some institutions have adopted to improve training outcomes.
In his response, Mr.Akandoh assured participants of the Ministry’s commitment to addressing their concerns and announced plans to enhance coordination and follow-ups.
He added that the Ministry would soon introduce policy reforms aimed at improving standards in health education and ensuring alignment with national health priorities.
These reforms include reducing the cost of admission, implementing automatic code generation for applicants, and clarifying leadership roles within HTIs.
