Tullow to spend US$5 billion on TEN project

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The country’s second biggest oil field, Tweneboa Eneryra, Ntome would attract about a half of Tullow’s two billion dollar expenditure for next year. This was contained in the company’s interim management statement released from London.

Tullow, in all, is expecting to spend about $5 billion on the TEN field which is expected to pour its first commercial oil by middle of 2016.

The field could produce about 80 thousand barrels a day when commercial production begins.

The amount Tullow is planning to spend could see some equipment being brought into the country. According to the 2015 budget, the economy is expected to grow at about 3.9 percent, government can therefore raise some revenue from Tullow’s activities to meet its target.

In addition, some Ghanaians could also be employed to handle works on and offshore the field.

Meanwhile, ratings Agency, Standard and Poor has downgraded Tullow oil’s credit ratings from BB to BB-. Standard & Poor’s lowered its credit rating for the British oil and gas explorer after it announced a review of its African business which would increase its exposure to Ghana.

The recent sharp decline in oil prices put further pressure on Tullow’s profits outlook, S&P said.

“Tullow Oil has recently announced potential adjustment in its investment plans, which could increase Tullow’s exposure to Ghana. We consider that this represents a rating constraint,” the rating agency said in a statement.

source : myjoyonline.com