Tullow Oil plans to proceed cautiously with its investment in Kenya, as it continues with the search for a strategic partner and waits for the government to approve its development plan.
The company said yesterday it plans to invest about Sh1.2 billion ($10 million) in its oil development projects in Kenya this year, just 2.7 per cent of its planned investment of $370 million in four African countries.
The investment in Kenya is the lowest amount the company is putting in, with Ghana set to receive a huge share of $300 million, Gabon ($40 million), and Côte d’Ivoire — double Kenya’s share.
“Tullow continues to focus on the process to secure a strategic partner for the development project in Kenya. In parallel, Tullow and its JV Partners are working with the Energy and Petroleum Regulatory Commission Authority (Epra) and the Ministry of Energy and Petroleum to finalise the FDP (Field Development Plan),” the company said in a statement yesterday.
Tullow and its joint venture partners submitted the FDP in December 2021 to the ministry, whose approval will give a go-ahead for the undertaking of proposed projects.
The FDP contains details on the Turkana Oil project including, the number of wells, the size of land required for the project, the construction design, and the designated petroleum waste disposal facilities. The Parliament has to ratify the document after ministry approval.
The firm said it realised nearly Sh500 million ($4 million) in revenues from cargo sales in Kenya’s Early Oil Pilot Scheme last year.
“In Kenya, proceeds from Early Oil Pilot Scheme cargo sales have been recorded as a credit against capex, resulting in a net inflow of c.$4m,” it said adding that it plans to invest $30 million (about Sh3.7 billion) in exploration and appraisal activities. BY DAILY NATION