Tullow Oil to Spend Ksh 170Mn in Kenya’s Oil Exploration in 2018

Tullow Oil plc (Tullow) projects to spend USD 170 Million in Kenya’s Pre-Development, Exploration and Appraisal Activity in 2018.

This is after the company concluded its phase of exploration and appraisal drilling in the South Lokichar Basin.

Tullow says its field operations in Kenya in 2018 will mostly involve the Early Oil Pilot Scheme (EOPS) and the overall development plan for the discovered resources.

“Work is already underway on the EOPS, with initial injectivity testing commencing on Ngamia-11 and oil production and water injection facilities being constructed in the field ready to commence production/injection in the first quarter of 2018,” said Tullow Oil in a trading update to the markets.

It also said it will give its assessment of discovered resources and plans for the development of the South Lokichar basin at its Full Year Results on 7 February 2018.

Tullow Oil expects to report estimated revenues of KSh80 billion in gross profit for 2017 from its global operations.

In a statement, the British oil and gas explorer also expects to generate a revenue of $1.7 billion this year (2018).

“Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility. The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency,” said Paul Mcdade the Chief Executive of the company.

“Over 2018 we expect to continue this positive momentum,” he added.

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