Good progress in Kenya  highlights   the first half of 2019 as Tullow Oil plc  announces  2019 Half Year Results

Good progress in Kenya highlights the first half of 2019 as Tullow Oil plc announces 2019 Half Year Results

BY CORRESPONDENT,NAIROBI,24TH JULY,2019-Oil exploration  company Tullow Oil has announced results for  the first half of 2019  indicating  positive  strides have been made towards  the company’s activities in Northern part of Kenya. According to a statement sent to the press on Wednesday, the Joint Venture Partners and the Government of Kenya concluded negotiations around key fiscal and commercial principles for Project Oil Kenya with agreements between the parties documented in Heads of Terms which were signed by the Joint Venture Partners and the Government of Kenya in Nairobi on 25 June 2019. This represented a material and encouraging step forward which gives all parties confidence that the project will be robust at low oil prices.

Further the statement affirms that development plan envisages that the Foundation Stage of Project Oil Kenya will include the Amosing, Ngamia and Twiga fields, with a 60,000-80,000 bopd Central Processing Facility and an export pipeline to Lamu. The infrastructure installed for the Foundation Stage will be utilised for the development of the remaining oil fields and future oil discoveries in the region, allowing the incremental development of these fields to be completed at a lower unit cost.

In the first half of the year, Front End Engineering Design (FEED) studies for both the upstream and midstream have been finalised. These studies, together with recent market soundings, have given the Joint Venture Partners greater confidence in the project’s estimated capital expenditure and construction timetable that is expected to see first oil three years after FID. Upstream and midstream Environmental and Social Impact Assessments (ESIAs) are expected to be submitted to the National Environmental Management Agency by the end of the third quarter 2019. The Government of Kenya, via the National Lands Commission, has gazetted the land required for the upstream development in Turkana and pipeline land surveys by the National Lands Commission began in the first week of July. An Upstream Water Framework agreement has been drafted by Tullow and submitted to the Government of Kenya for their review. Given this significant progress, the FID of the Development is now targeted for the second half of 2020.

 Early Oil Pilot Scheme

The Early Oil Pilot Scheme (EOPS) continues to perform well and the trucking operations, which transport oil from Turkana to Mombasa, are running smoothly. The reservoirs, wells and associated facilities at both Amosing and Ngamia have been performing in line with expectations.

Good progress in Kenya has been a highlight of the first half. We have seen how a Joint Venture Partnership working closely and co-operatively with the host government can obtain results. We continue to discuss our farm-down in Uganda with both Joint Venture Partners and the Government and remain optimistic that we can make progress.”Mark MacFarlane, Executive Vice President for East Africa,  commented:

In May 2019, EOPS production was increased from 600 bopd to 2,000 bopd and, to date, over 200,000 barrels of oil have been safely delivered to Mombasa. Tullow expects East Africa’s first export cargo of oil to be sold and lifted in the third quarter of 2019.

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