Kenya: Total, Africa Oil Quit Kenya Oil Project

Nairobi — Total and Africa Oil have quit Project Oil Kenya in Turkana County.

Tullow Oil plc, a global independent oil and gas exploration and production firm, will now fully acquire the project.

The 100 percent equity takeover is now awaiting approval from the government.

Tullow Kenya BV Managing Director Madhan Srinivasan disclosed that the firm is engaging strategic partners who have expressed an interest in the project based on its economic viability.

“Project Oil Kenya is a low-cost development project that has the potential to unlock material value. Prospective strategic partners remain engaged, and detailed farm-out discussions continue with a number of companies,” Srinivasan said, adding the firm’s commitment to progressing the development of the South Lokichar basin project.

A communiqué from Tullow indicated that the firm has been informed by its two minority partners of their intention to issue notices of withdrawal from blocks 10BB, 13T, and 10BA in the South Lokichar Basin for differing internal strategic reasons.

“As a result, Tullow’s working interest in these blocks will increase from 50% to 100%. The Board considers that owning 100% of the project creates more optionality, gives Tullow more flexibility in the ongoing process to secure strategic partners, creates a simpler Joint Venture Partnership and streamlines project delivery,” Srinivasan added.

He said the project progress continues, and the updated Field Development Plan (FDP) was submitted to the Kenyan regulator, Energy and Petroleum Regulatory Authority (EPRA), in March 2023 and is now under review by EPRA.