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21.10.2014 Business & Finance

Tullow To Continue Gas-Flaring

By Daily Guide
Tullow GhanaTullow Ghana
21.10.2014 LISTEN

Tullow Ghana, operators of the Jubilee Oilfield, has disclosed that it will continue to flare gas until Ghana's gas infrastructure is completed.

Even though Tullow's permission to flare gas would expire at the end of October 2014, it has requested for an extension to continue gas-flaring temporarily.

Tullow was given authorization by government to flare 500million standard cubic feet of gas per month in mid-June this year as a result of the delay in the completion of the country's gas processing plant.

The oil company flared about 1.7billion standard cubic feet of gas from Jubilee Oilfield between June and September, which helped to maintain daily production at about 100,000 barrels per day.

Charles Darku, General Manager, Tullow Ghana, during the company's turn at the Facts Behind the Figures forum organized by the Ghana Stock Exchange (GSE) in Accra said that 'we are doing limited flaring and we will seek an extension for it if gas export to shore is delayed.'

Before Tullow began flaring gas, it proposed the construction of a by-pass to supply gas directly from the Floating Production, Storage and Offloading (FPSO) vessel to electricity-producing thermal plants in Takoradi.

Commenting on the progress made so far with the construction of the bypass, Mr. Darku said Tullow brought in the parts for Ghana Gas Company to install, but there was an issue with the heater, which it intends to procure new one.

Touching on calls for oil companies to pay environmental tax due to pollution, he said, 'Tullow will comply with what the regulator wants us to do with respect to flaring gas.'

 
Local Content
In keeping with the industry's local content and participation rules, Mr Darko said, 'We have made local content part of our procurement processes. Once there is capacity, we will procure from here.'

He said Tullow had awarded about 200 contracts to local suppliers that employ about 1,500 Ghanaians, adding that the company has sponsored 55 Ghanaian engineers to undergo training in Singapore.

Mr. Darko noted that in 2013, Tullow Ghana spent $128 million on local businesses on behalf of the Jubilee partners from $69.2 million in 2012.

Tullow Oil Plc, the parent company of Tullow Ghana, listed on GSE in 2011 as part of its commitment to ensure that locals benefit from the burgeoning industry.

By Cephas Larbi
[email protected]

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