Tullow Oil has projected that it will spend $5 million (KSh565 million) in capital expenditure for oil development in Kenya this year.
In its January Trading Statement and Operational Update, the multinational oil and gas exploration firm estimates capital expenditure for 2022 will total $350 million (KSh39.6 billion).
Tullow says under the Project Oil Kenya JV Partners, it is still seeking strategic partners for development of three oil blocks in Turkana County as discussions continue with interested parties.
Tullow Oil owns 50% of block 10BB, 10BA and 13T under the joint venture which it expects to add value to its bottom line.
Ghana, where the firm has primary listing on Ghana Stock Exchange, will have the biggest chunk of investment at $270 million (KSh30.5 billion) in what the firm says has been prompted by investment in infrastructure for the Jubilee North East and South East areas where it expects meaningful growth in production beginning 2023.
The firm targets to spend another $30 million (KSh3.4 billion) on non-operated portfolio and another $45 million (KSh5.1 billion) on exploration and appraisal.
Tullow says it is still keen on reducing its debt portfolio as year-end net debt last year reduced to $2.1 billion from $2.4 billion in 2020.
Tullow is an independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges. The Group has interests in over 30 exploration and production licences across eight countries. In March 2021, Tullow committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030.
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