Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-06 16:03:34
Tullow Oil Plc recently made a significant announcement of an ambitious Ksh1.4 billion investment that has the potential to impact fuel prices in Kenya in the long term. This revelation was made during the unveiling of the company’s Full-Year Results for the year ended December 31, 2023.
Madhan Srinivasan, the Managing Director of Tullow Kenya, shared that the company is in discussions with the Kenyan government to develop resources amounting to 470 million barrels of oil equivalent per day in order to produce up to 120 thousand barrels of oil per day in the Turkana oil fields. This strategic plan aims to leverage the immense oil reserves in Turkana and potentially contribute to lowering fuel prices in the region.
The estimated cost of this project is USD10 million, equivalent to Ksh1.4 billion. The Energy and Petroleum Regulatory Authority (EPRA) has already granted an official notification extending the review period of Tullow’s Field Development Plan (FDP) until June 30, 2024. Additionally, Tullow Oil Plc is closely collaborating with the Ministry of Energy to accelerate production and maximize the value of the oil fields in Turkana.
The Managing Director highlighted the collaborative effort with the Kenyan government in evaluating the FDP. Once the evaluation is completed, the FDP will be submitted for review to the Cabinet Secretary for Energy and Petroleum before seeking final approval from Parliament. This project has been meticulously designed to remain robust even in the face of fluctuating oil prices, and discussions are ongoing with potential strategic partners to ensure its success.
Tullow Oil Plc’s first discovery of oil in Turkana dates back to 2012, with estimates suggesting the region held three billion barrels of oil reserves. In 2023, the company declared its readiness to commence commercial exploration of the oil, signaling the start of significant developments in the oil sector in Kenya. The company foresees Kenya being able to extract and export crude oil for a period of 25 years, marking a substantial milestone in the country’s energy sector.
Notably, Kenya has already exported two batches of crude oil for analysis and appraisal purposes. These exports signify the progress made in harnessing the oil resources in Turkana and the potential for economic growth and development in the region. The oil exploration endeavors in Turkana County hold promise for Kenya’s energy landscape and could potentially contribute to the country’s energy security and economic prosperity.
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