Bloomberg reported that the Jubilee partners met government officials yesterday and agreed to the commencement of gas flaring as the current gas re-injection programme is becoming unsafe and the gas processing plant is not yet ready. Gas flaring is likely to commence in mid February. Without flaring, output at Jubilee would have to be cut.
The effect on production will depend on the extent to which flaring will be permitted. On balance, we see it as positive for Tullow and partners. If full flaring is permitted, it might allow production at Jubilee to increase above the guided 100k bopd. Gas handling is the restraint preventing Jubilee from producing at capacity (>120k bopd).
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.