Tullow Oil plc will have full ownership of blocks 10BB, 13T and 10BA in the South Lokichar Basin after partners TotalEnergies and Africa Oil withdrew for “differing internal strategic reasons”.
RESOURCES
Tullow expects net project 2C contingent resources to increase from 231 mmboe to 461 mmboe, and the group’s total contingent resources from 605 mmboe to 836 mmboe.
The company’s working interest will increase from 50% to 100% and net capex guidance for 2023 in Kenya will rise from $10 million to $15m, less than 5% of group capex.
STRATEGIC PARTNERSHIP
Tullow said that full project ownership created “more optionality”, more flexibility in securing strategic partners, created a simpler joint venture and streamlined project delivery.
“This is a low-cost development project that has the potential to unlock material value for Kenya.
“The prospective strategic partners have been informed. They remain engaged and detailed farm-out discussions continue with a number of companies.
“Whilst the process has taken longer than expected, Tullow remains focused on securing a strategic partnership this year.”
The company continues work on the project following submission in March 2023 of a revised field development plan (FDP) currently under review by the Kenyan regulator.