Tullow earmarks Ksh 1.2B for Kenya's oil field development
Tullow Oil has set aside Ksh 1.24 billion ($10M) for fine-tuning the Field Development Plan (FDP) and related local operations under Project Oil Kenya.
This comes as the firm seeks a strategic investment partners in developing Kenya's onshore oil fields in Lokichar basin.
Lack of a strategic partner to develop the multi-billion project which is expected to catapult the country into the league of oil producing countries has dragged due to cost which as Tullow seeks strategic partners in the project.
According to a trading statement and operational update issued by the London Stock Exchange (LSE) listed firm, efforts to secure a strategic partner in the project which it is implementing with Joint Venture partners, Africa Oil and Total Energies are still on course.
“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," said Tullow Oil plc Chief Executive Officer Rahul Dhir.
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.
Tullow Plc generated total revenue, including the cost of hedging, of $1.7 billion, at a realised average oil price of $102/bbl before hedging and $87/bbl after hedging.
Free cash flow for the full year 2022 is expected to be $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.