It said a new operating procedure was being implemented as the Turret Bearing could no longer rotate as originally designed.
These were contained in Tullow’s latest Trading and Operations update issued here covering the period, January 1 to April 28, 2016, in advance of the Group’s Annual General Meeting (AGM) being held in Britain on Thursday.
“A technical investigation of the Jubilee FPSO turret bearing has confirmed that it is no longer able to rotate as originally designed, leading to new operating procedures being implemented,” Tullow explained.
The measures taken, according to the statement, include the vessel being put on “heading control”, which requires the use of tugs to minimize vessel rotation and revised offtake procedures.
“Revised operating procedures are being implemented at the Jubilee field with new equipment and approvals in place. Sea water injection resumed on 23 April 2016 and offtake is expected to re-commence in the next few days with production to follow shortly thereafter.
“These activities and the two-week planned maintenance shutdown have impacted gross production from the Jubilee field which averaged 80,300 bopd (28,500 bopd net) for the first quarter of 2016.
“In light of this issue, full year 2016 average working interest production is likely to be below current guidance of 73-80,000 bopd and updated guidance will be provided when the new operating procedures have been fully implemented and stabilized,” Tullow added.
According to the release, a project team has been established to review the root cause of the problem and determine the optimum design of the permanent solution of the Jubilee turret issue.
It explained that Tullow had a comprehensive package of insurances in place, including Hull and Machinery insurance, procured on behalf of the Joint Venture.
The statement said this insurance covered relevant operating and capital costs associated with damage to the FPSO, and business interruption insurance which covered consequent loss of production and revenue.
“Claims under both policies have been notified to our insurers,” the statement said.
“It has been a very busy start to the year for Tullow. In West Africa, we have made excellent progress with the TEN Project which remains on time and on budget while a highly experienced project team is dealing with the turret issues on the Jubilee field FPS,” Aidan Heavey, Chief Executive Officer (CEO) of Tullow Oil PLC, said in the statement.
Gas supply to the Chinese-built Gas Processing plant at Atuabo where it is processed for power production and other purposes has been suspended due to the problem with the FPSO, leading to significant levels of interruptions in power distribution in the country.
Monday, the Petroleum Commission also issued a statement to explain the issue with the FPSO, saying oil production would resume while a permanent solution was being sought for the turret bearing problem. Enditem.