Tullow Oil To Invest Ksh1.24B In Appraisal Engagements In Kenya

Global independent oil and gas, exploration and production firm Tullow Oil Plc has reiterated its commitment to scale up the development of Project Oil Kenya this year.

This year, Tullow plans to invest Ksh1.24 billion (US$10 million) in Project Oil Kenya appraisal engagements focusing on fine-tuning the Field Development Plan (FDP) and related local operations.

A trading statement and operational update issued by the London Stock Exchange (LSE) listed firm confirms that efforts to secure a strategic partner for the local oil development project are still on course.

The statement indicated that while the efforts to secure a strategic partner progress, Tullow and its Joint Venture partners (Africa Oil and Total Energies) are also working closely with the local government agencies seeking to finalise the firm’s field development plan (FDP).

As part of the local licensing procedures, Tullow and its Joint Venture partners submitted the Project Oil Kenya Field Development Plan (FDP)  for government review in December 2021 and continue to engage with a view to reaching an agreement in the coming months.

In the statement, Tullow Oil plc Chief Executive Officer Mr Rahul Dhir said: “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.”

The firm’s financial update indicates that the Group generated total revenue, including the cost of hedging, of c.$1.7 billion, at a realised average oil price of c.$102/bbl before hedging and c.$87/bbl after hedging.

Free cash flow for the full year 2022 is expected to be c.$267 million, ahead of guidance, with lower oil prices towards the end of the year offset by continued focus on cost control and deferrals of decommissioning costs and capital expenditure.

During 2022, Tullow supported STEM education through a range of programmes from primary to tertiary education across its countries of operation and created new entrepreneurship opportunities in Ghana and Kenya. Thousands of beneficiaries of these programmes are now leveraging new knowledge and skills as productive members of their communities.

Read: Kenya Grants Tullow Oil Crucial License Extension

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