Kenyans To Wait For Another Five Years To Enjoy The Oil Billions

KEY POINTS

  • Tullow in a statement said the extension was part of the deal that led to its lifting of a force majeure on the project last month.
  • The move now carries forward the timelines for the project that has originally set for 2021 before several extensions.
  • The changes in timeline show how slow the project has been moving closer to the production phase and risks its prospects as delays may hurt its attractiveness for investments.

Kenya will have to wait until after 2025 to get the petrodollars from the Turkana oil fields after the government extended the exploration timeline for Tullow.

On Wednesday, the British Oil explorer said it had been given 15 more moths for the exploration phase of the Turkana oil project. The announcement essentially pushed the production timelines and extended the long-awaited final investment decision.

“Kenya has agreed to an initial extension to the second additional exploration period for the 10BB and 13T license blocks until 31 December 2020 with a final extension until 31 December 2021, contingent on an agreed work program and budgets,” Tullow said in a statement.

Tullow in a statement said the extension was part of the deal that led to its lifting of a force majeure on the project last month.

The company said it had suspended its intended sale of a stake in the project without specifying its plan on the intended farm down for a 50 percent shareholding in blocks 10BB and 3T in the Turkana.

“The farm down process has been suspended while the joint venture partners complete a comprehensive review of the development concept to ensure it continues to be robust at low oil prices, and also consider the strategic alternatives for the asset,” Tullow added.

READ MORE

Timelines forwarded

The move now carries forward the timelines for the project that has originally set for 2021 before several extensions.

The explorer who registered a 138 percent drop to a loss of $1.3 billion for the last six months, will need to get funds together with the Kenyan Government to build a pipeline after the making an investment decision.

This will be then followed by another 38 months to build the Lamu-Lokichar pipelined, something that will put the country’s first yield from the oil resources beyond 2025.

According to the Kenyan Civil Society Platform on Oil and Gas, the changes in timeline show how slow the project has been moving closer to the production phase and risks its prospects as delays may hurt its attractiveness for investments.
- Advertisement -

Stay Connected

16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe

Must Read

Mutahi Kagwe locks down Eastleigh, Somali abandons the place to relocate to South C, South B

Mutahi Kagwe, the Cabinet Secretary for Health in the country locked down Eastleigh due to the residents not taking heed to what the government...
- Advertisement -

Aisha Jumwa to spend the weekend in cells after failing to raise Sh4m bail

Malindi MP Aisha Jumwa is spending the weekend in police custody after failing to raise Sh4m cash bail and observers are asking why is...

Landlord threatens to increase tenants’ rent if Biden is elected

A Colorado landlord allegedly threatened his tenants by sending them a letter saying their rent would double if former vice president Joe Biden is...

At Least 17 Worshippers Killed In Ghana Church Collapse

At least 17 people were killed in eastern Ghana after a three-story church building collapsed with several other people feared trapped in the rubble,...

Recent News

Mike Sonko to pay rent for over 16,000 Nairobi residents

Governor Mike Sonko is showing his philanthropic and caring trait once more. This time he has extended a waiver on the rent payable to...

Aisha Jumwa to spend the weekend in cells after failing to raise Sh4m bail

Malindi MP Aisha Jumwa is spending the weekend in police custody after failing to raise Sh4m cash bail and observers are asking why is...

Landlord threatens to increase tenants’ rent if Biden is elected

A Colorado landlord allegedly threatened his tenants by sending them a letter saying their rent would double if former vice president Joe Biden is...

At Least 17 Worshippers Killed In Ghana Church Collapse

At least 17 people were killed in eastern Ghana after a three-story church building collapsed with several other people feared trapped in the rubble,...

I am approaching 60 years, don’t call me Kamwana- Uhuru

President Uhuru Kenyatta is no longer comfortable with the moniker Kamwana ( Kikuyu for young energetic youth) as he is approaching old age. While addressing...