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RADP / Pulse Ghana  >  news  >  business

Load shedding returns as FPSO postpones production

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This is due to damage of the turret bearing on the floating production storage and offloading vessel.

 
 

Tullow estimates that production from the FPSO will re-start in two weeks.

“The FPSO Kwame Nkrumah has now been placed on 'heading control' through the use of tugs which minimise vessel movement around the bearing.

“New operating procedures, including the use of a dynamically-positioned shuttle tanker (capacity of 250,000 barrels of oil) and a storage tanker (capacity of 1 million barrels of oil), are being implemented to assure safe production and off-take operations,” said a statement by Tullow.

READ MORE: Energy crisis Dumsor still with us…?

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The first two-week shutdown resulted in shortage of gas supply from the West Africa Gas Pipeline Company to power producer, Volta River Authority (VRA) -- causing intermittent power cuts in some parts of the country.

The latest update on the FPSO could worsen the power situation.

The country is just recovering from a debilitating power challenge that spanned about two years.

Please read below a statement from Tullow Oil:

Further to its release of 18 February, Tullow Oil plc ("Tullow") issues the following operational update on the Jubilee Field, Ghana. Technical investigation of the condition of the turret bearing on the FPSO Kwame Nkrumah has confirmed that the bearing has been damaged and is no longer able to rotate as originally designed.

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Oil production and gas export can continue but under revised operating and off-take procedures. A root cause analysis is ongoing and a project team is assessing which long-term remediation option is most appropriate.

Initial feasibility studies by the team have confirmed that the bearing issue can be fully resolved. The FPSO Kwame Nkrumah has now been placed on "heading control" through the use of tugs which minimise vessel movement around the bearing.

New operating procedures, including the use of a dynamically-positioned shuttle tanker (capacity of 250,000 barrels of oil) and a storage tanker (capacity of 1 million barrels of oil), are being implemented to assure safe production and off-take operations.

Although all necessary equipment for the new operating procedures, including the two tankers, are in place, it is important that additional time and due care is taken to implement new procedures and receive required approvals. Safety and protecting the environment remain Tullow’s key priorities. Tullow currently estimates that production from the FPSO will re-start in approximately two weeks time and will also take time to ramp-up.

Tullow’s production guidance will be re-issued once the new operating arrangements have stabilised. Tullow has a comprehensive package of insurances in place, including Hull and Machinery insurance, procured on behalf of the Joint Venture which covers relevant operating and capital costs associated with damage to the FPSO, and Business Interruption insurance which covers consequent loss of production and revenue. Claims under both policies have been notified to our insurers.

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