Tullow To Spend USD 2.9 Billion on Kenya’s Oil Project

Tullow Oil has announced total capital expenditure in Kenya’s oil project foundational stage at USD 2.9 billion or an equivalent to 294.06 billion shillings at the current exchange rate.

The total spending will be USD 1.8 billion or an equivalent to 182.52 billion shillings in development of oil streams and USD 1.1 billion or similar to 111.54 billion shillings for the pipeline linking Turkana and Lamu.

Initial production at Amosing and Ngamia wells are estimated between 60,000 and 80,000 barrels per day (bpd) with exports projected to start in 2021 or 2022 and is expected to peak at 100,000 bpd.

Small-scale early exports, to the tune of 2,000 bpd, are expected to commence this year with Tullow setting up equipment in Turkana oilfields to separate crude oil from impurities and will be transported by trucks on a daily basis.

The construction of the Turkana-Lamu pipeline is expected to pave way for the setting up of a permanent central processing facility for large-scale exports.

However, amidst the developing oil project is the angst from local populace who are seeking jobs and additional benefits from the British firm.