Browsing: Africa Oil Corp

The Kenyan government and its Joint Venture Partners: Tullow Kenya, Total and Africa Oil Corp, have signed Heads of Terms for the development of Kenya’s oil fields in South Lokichar Basin, where oil exploration and production has been ongoing on small scale. Also factored in the agreement is the construction of Kenya’s oil pipeline linking the oil fields to the Lamu Port, where the government is constructing the country’s second major sea port after the Port of Mombasa. The government signed an Early Oil Pilot Scheme agreement with Joint Venture Partners in 2017 allowing all upstream contracts to be awarded, including trucking of 600 barrels of oil per day to Mombasa ready for exports.

Kenya has made a major step in the commercialisation of its oil ahead of planned exports which will see the East African nation become a major net oil exporter in the region.

In the latest developments, the government and its Joint Venture Partners: Tullow Kenya, Total and Africa Oil Corp, have signed Heads of Terms for the development of the oil fields in the northern part of the country (South Lokichar Basin-Turkana), where exploration and production has been ongoing on small scale.

These Heads of Terms capture all of the key commercial principles related to the implementation of ‘Project Oil Kenya’ and provides both the framework and commercial certainty required to draft the fully termed upstream and midstream agreements, ahead of a Final Investment Decision(FDI).

This is a major and important milestone towards reaching a FDI.

Oil blocks and pipeline

Under the deal, all parties have agreed that the Amosing, …