Oil and gas exploration company, Tullow Oil, plans to invest Sh 1.24 billion in the development of “Project Oil Kenya” this year after fine-tuning its Field Development Plan (FDP) and related local operations.
As part of the local licensing procedures, Tullow and its joint venture partners (Africa Oil and Total Energies) submitted the project’s development plan for government review in December 2021 and continue to engage with a view to reaching an agreement in the coming months.
A statement and operational update issued by the London Stock Exchange listed firm confirms that efforts to secure a strategic partner for the oil project are still on course.
“Tullow continues to focus on the process to secure a strategic partner for the development project in Kenya. In parallel, Tullow and its joint venture partners are working with the Energy and Petroleum Regulatory Commission Authority and the Ministry of Energy and Petroleum to finalise the FDP,” said Tullow Oil plc CEO Rahul Dhir.
The announcement comes as the company’s financial update indicates that the Group generated total revenue, including the cost of hedging, of c.$1.7 billion, at a realised average oil price of c.$102 per barrel before hedging and c.$87 per barrel after hedging.
Free cash flow for the full year 2022 is expected to be c.$267 million, ahead of guidance, with lower oil prices towards the end of the year offset by continued focus on cost control and deferrals of decommissioning costs and capital expenditure.
