British oil explorer Tullow faces new setback after its partners exit Turkana oilfields
3 min read
Tullow Oil assumes full ownership of the Turkana project after the exit of Africa Oil, and Total from the joint venture
Tullow Oil assumes full ownership of the Turkana project after the exit of Africa Oil, and Total from the joint venture.
Multinational oil and gas firm Tullow Oil has acquired complete control of the Project Oil Kenya development in Turkana County following the withdrawal of its two joint venture partners.
British oil explorer Tullow said two minority partners will withdraw in some exploration blocks in Lokichar, Turkana, leaving the London-listed firm as the sole owner of the oilfields.
In a statement on Tuesday, Tullow said the shareholders will withdraw from blocks 10BA, 10BB, and 13T as the company shifts focus to finding a strategic partner.
Tullow said TotalEnergies and Africa Oil Corp, who held a 25 percent stake each, have called it quits due to “differing internal strategic reasons”.
“With the strategic exit of Africa Oil Corp and Total Energies from the Project, Tullow will assume a 100 percent equity position, subject to the Government of Kenya’s approvals, and will continue its work with the Government and its host communities to make the region a significant energy-producing province,” Tullow said in a statement.
Government announces mandatory fees for all Kenyan businesses in 30 day
Most wanted contaminated sugar mastermind arrested at JKIA
Kenya spends a record KSh107bn on repaying China loans
Uhuru breaks silence on Northlands farm invasion as he scoffs Ruto’s administration
The Turkana oil project has suffered several delays with the investors and government postponing timelines, making the future uncertain over a decade after the discovery.
Last year, Tullow said the future of the project is dependent on the company and its partners getting a strategic investor.
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.
Tullow said in its financial report for the year ended December 2022 that the book value of its Kenyan assets stands at $252.6 million (Sh32.4 billion) but added that a positive outcome of its current efforts to gain a production licence and attract a new strategic investor would unlock higher valuation of the asset.
The firm, however, faces the possibility of having to write off the entire value of the asset should it fail to resolve uncertainties surrounding the project, which include finding an acceptable investment offer and government approval of the same, obtaining financing for the project, and meeting government demands a viable field development plan (FDP).
Also read,
Canada partners with Kenya to offer Ksh15 million research grant; How to apply
Blow to Ruto as court stops Shakahola probe
Ruto’s plan to take back healthcare from counties revealed
Dar es Salaam and Djibouti ports surpass Mombasa in new World Bank ranking
Follow us
