Tullow Oil plc’s partners TotalEnergies and Africa Oil have withdrawn from the South Lokichar Basin joint venture in Kenya for “differing internal strategic reasons”.
OPTIONALITY
Tullow said it expected 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% while net capital expenditure guidance for 2023 in Kenya will rise from $10 million to $15m, less than 5% of group capex.
Tullow added that full 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 currently under review by the Kenyan regulator.