Tullow oil risks closure of its operations at the Turkana Oil Project if it does not find a strategic investor in the project.
In its latest annual report, Tullow says failure to secure a strategic partner would impact its ability to progress the Kenya project to final investment decision and unlock value.
Nevertheless, the firm says discussions are underway with potential bidders around a range of commercial arrangements.
A strategic partner would enable Tullow to cushion its risks for the multi-billion project that includes setting up a crude pipeline and processing facilities for the oilfields.
Tullow owns a 50% operated interest in blocks 10BB and 13T in South Lokichar basin, Turkana County, where the company discovered about one billion barrels of crude in 2012. Africa Oil Corporation and Total each own a 25% stake.
Kenya had set a December 2021 deadline for Tullow to present a comprehensive investment plan for oil production in Turkana or risk losing concession on two exploration fields.
In January this year, Tullow Oil had projected that it will spend KSh565 million in capital expenditure for oil development in Kenya this year.