Africa Oil Africa Oil Corporation, the partner of Tullow in Turkana’s exploration fields, has been given regulatory approval to sell 50 per cent of its assets in three Kenyan blocks to Maersk Oil and Gas of Denmark.
Further exploration is set to be carried out by the company since the deal will lead to raising of Sh.35.7 by Africa Oil. The agreement has made Africa Oil and Tullow have equal shares of oil on the three blocks in Turkana.
The deal has been signed amidst falling of crude prices as global oil and gas companies shift focus to fields where there is reasonable production. Oil prices have been going down since the beginning of the year. Analysts stated that the prices are expected to experience further falls as the year continues.
Tullow has had massive significant investments at the base since block 10BB held the Amosing and Ngamia well where varying amounts of oil were found by the company since its announcement in 2012.
Africa Oil’s President and Chief Executive officer Keith Hill stated that the transaction will put Africa in the position of not requiring any additional equity financing prior to first oil. He added that this is going to allow them to push on despite the current difficult environment in oil pricing in the world.
Hill said that Maersk is an excellent partner in terms of technical and financial strength and experience which is critical to moving the development project forward.
Last year, Africa oil used Sh.20 billion in drilling, exploration surveys and field development studies.
Article by Vera Shawiza.