Tullow Oil Plc has revealed plans to invest Kes 1.24billion in fine tuning the Field Development Plan (FDP) and related local operations under Project Oil Kenya.
This comes at a time when the firm continues its efforts to secure a strategic partner for the local oil development project.
In a trading statement and operational update, the London Stock Exchange (LSE) listed firm indicated that while the efforts to secure a strategic partner progress, Tullow and its Joint Venture partners (Africa Oil and Total Energies) are also working closely with the local government agencies seeking to finalise the firm’s field development plan (FDP).
As part of the local licensing procedures, Tullow and its Joint Venture partners submitted the Project Oil Kenya Field Development Plan (FDP) for government review in December 2021 and continue to engage with a view to reaching an agreement in the coming months.
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Global independent oil and gas, exploration and production firm Chief Executive Officer Rahul Dhir said that the company continues to focus on the process to secure a strategic partner for the development project in Kenya.
“ In parallel, Tullow and its JV Partners are working with the Energy and Petroleum Regulatory Authority (EPRA) and the Ministry of Energy and Petroleum to finalize the FDP,” he said.
Tullow’s financial update indicates that the Group generated total revenue, including the cost of hedging, of Kes 211.3billion, at a realised average oil price of Kes 12,683 per barrel before hedging and Kes 10,818 per barrel after hedging.
Free cash flow for the full year 2022 is expected to be Kes 33.2billion, ahead of guidance, with lower oil prices towards the end of the year offset by continued focus on cost control and deferrals of decommissioning costs and capital expenditure.
