Tullow Oil has announced its initial assessment estimate Kenya crude oil recoverable resources have jumped 25 percent to 750 million barrels following the recently concluded exploration and appraisal drilling.
“In Kenya, the Group continues to examine the data from its recently concluded appraisal campaign and our initial assessment indicates recoverable resources of up to 750 million barrels of oil in the South Lokichar Basin,” read the Trading Update, for the period 1 January to 28 April 2016 statement.
The oil company has said it would consider further exploration activities following the successful basin opening well Etom-2 result in the South Lokichar Basin in December 2015.
READ: There is Significant Oil in Kerio Valley –Tullow.
The assessment gives Kenya appositive outlook in its venture on building an export pipeline alone after Uganda agreed to a separate export pipeline through Tanzania.
Aidan Heavey, Chief Executive Officer, Tullow Oil Plc, “Following the decision of the Kenyan and Ugandan Presidents to develop standalone export pipelines, we now have much greater clarity and certainty around oil production in both countries. In Kenya, our appraisal campaign has also been very successful with ongoing assessment indicating increased resource estimates.”
“Tullow will now work with the Government of Kenya and our partners on a range of options for the independent development of these resources including early production using existing infrastructure which would provide valuable reservoir data ahead of a full field development with an export pipeline,” the company said in a statement.
The company has reduced its annual capital expenditure budget by another $100m to $1 billion and may cut spending further as it adjusts its balance sheet to weak oil prices.