Tullow Kenya BV will become sole owner of certain blocks onshore Kenya as minority partners withdraw.
Africa Oil Corp. and Total SE informed Tullow of their withdrawal from Blocks 10BB, 13T, and 10BA in South Lokichar basin near Lake Turkanaby, Kenya. Tullow’s share in the project will increase to 100% from 50%.
Africa Oil submitted notices to Ministry of Energy and Petroleum requesting the government's consent to transfer all rights and obligations under the PSCs to its remaining joint venture partner. Africa Oil president and chief executive officer Keith Hill said the company’s decision to exit the Kenya concessions is intended to permit focus on other production and exploration opportunities, including in Namibia’s Orange basin where the offshore Venus discovery is under appraisal.
Tullow said progress continues as the updated field development plan was submitted in March to Kenyan regulator Energy and Petroleum Regulatory Authority and is now under review.
Following partner withdrawals, Tullow's net 2C contingent resources in the project are expected to increase to 461 MMboe from 231 MMboe, and the company’s net capital expenditure guidance in Kenya for 2023 will increase to $15 million from about $10 million.
Tullow is continuing farm-out discussions with companies in the aim of securing a strategic partnership this year, the company said.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).