Tullow Oil plc, a global independent oil and gas exploration and production firm, has taken full control of the Project Oil Kenya development in Turkana County following the withdrawal of its joint venture partners, Africa Oil Corp and Total Energies.
With the departure of its partners, Tullow now holds a 100% equity position in the project, pending approval from the Government of Kenya.
Tullow Kenya BV Managing Director Madhan Srinivasan said the firm is engaging strategic partners who have expressed an interest in the project based on its economic viability.
“Project Oil Kenya is a low-cost development project that has the potential to unlock material value,” Srinivasan said. “Prospective strategic partners remain engaged, and detailed farm-out discussions continue with a number of companies.”
Tullow Oil received notifications from its minority partners about their intention to withdraw from blocks 10BB, 13T, and 10BA in the South Lokichar Basin due to differing internal strategic reasons. As a result, Tullow’s working interest in these blocks will increase from 50% to 100%.
In support of Project Oil Kenya, the National Government of Kenya has allocated a budget of Kshs 651.2 million to the State Department for Petroleum in its Programme Based Budget for the year ending June 30, 2024. The budget document also indicated that finalising the FDP process is a high priority within the programme.
The document currently in parliament indicates that: “In the medium-term 2023/24-2025/26, the State Department has prioritized programs and sub-programs intended to provide policy, the legal and institutional framework for exploration, development, production, and commercialization and ensure the security of supply of oil and gas products for sustainable development. In this regard, the State Department will finalize the Field Development Plan for the South Lokichar Oil field; review, demarcate and gazette a new Block Map in view of the anticipated bid rounds during the period; construct a water pipeline from Turkwel to the South Lokichar Oil field.”