Browsing: Tullow Kenya

Kenya first announced the discovery of oil in Block 10BB and 13T in Turkana in March 2012.

This became a beacon of hope for the nation, to massively spur economic growth through the so-called ‘petro-dollars’. Currently, Tullow is the project operator and has a 50 per cent stake, while Africa Oil Corp and Total Energies hold 25 per cent each. However, the country is yet to fully commercialize crude oil production. Hitherto, Kenya’s petrodollar dream has only experienced delays and missed deadlines. The project stalled as the companies’ focus was on mitigating debt and finalizing its development programme.

The major road block has been a lack of sufficient working capital, which has led to a scale back in activities to minimize capital investment, until both a strategic partner and the Final Development Plan (FDP) are approved. Since the start of the year, the firm has been engaged in discussions with …

Total Uganda has bought out the financial struggling Tullow Oil for a whopping USD575 million as the latter gears up to leave the East African market.

The buyout will be paid in part by a USD 500 million initial payment payable upon completion and another USD75 million payable when the project pact is finalized.

With completion of the sell, Total Uganda will now own Tullow’s assets on the humongous Lake Albert Development project and the even larger East African Crude Oil Pipeline project. Tullow, a British owned conglomerate has been struggling and the just inked Uganda buy out will help improve its liquidity.

The move is not due to the ongoing global coronivrus pandemic, it is rather a strategic plan that was on the table long before the pandemic begun. At the start of the year, the sale and purchase agreement had already been signed, well before the Covi-19 virus …

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, …