Tullow Oil intends to maintain its annual expenditure on Kenya’s oil project at Sh1.6 billion ($10 million), signaling a sustained commitment to the project since its discovery in 2012. The British oil company plans to reduce its overall capital spending across its operational countries from $380 million (Sh61.95 billion) to $250 million (Sh40.76 billion) as it pauses drilling activities in Ghana. Kenya’s budget for the year matches last year’s spending and constitutes four percent of Tullow’s total capital expenditure plan.
In March, Tullow will release its full-year trading results, expected to provide further insights into the progress of Kenya’s oil project, which has faced numerous setbacks, delaying crucial decisions. Following the exit of TotalEnergies and Africa Oil Corp last May, Tullow became the sole partner in the project, prompting discussions with potential new partners. Delays in approving the final field development plan (FDP), which outlines project details and investment forecasts, have also impacted progress.
The FDP, based on a resource estimate of 585 million barrels, initially aimed for a production plateau of 120,000 barrels per day with a capital investment of $3.4 billion (Sh554.3 billion) for first oil. Despite expectations for approval in the past year, challenges persisted, leading to a reassessment of risks and a $9 million (Sh1.47 billion) impairment following the partners’ withdrawal.
Story : Business Daily
