• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Tullow decries oil project delays

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

KENNEDY SENELWA

By KENNEDY SENELWA
More by this Author

Delays by governments in granting approval to oil projects risks eroding the value of Kenya’s and Uganda’s commercial crude oil discoveries, Tullow Oil has warned.

The firm’s executive vice-president for East Africa Mark MacFarlane, said benefits do not start with crude output, “and further delays will affect the country and communities.”

Tullow Oil Plc has invested over $4 billion in exploring for crude oil in north western Kenya and western Uganda leading to discoveries, but the period for obtaining approvals is delaying the final investment decision (FID).

Tullow with its partners need approvals to make the FID to build oil production facilities with crude export pipeline from South Lokichar to Kenya’s Lamu port and Hoima in western Uganda to Tanzania’s Tanga port respectively.

Tullow Oil Plc, Total SA and Africa Oil Corporation have jointly discovered 560 million barrels of commercial crude oil in South Lokichar basin which straddles block 10BB and block 13T in northwestern Kenya.

China National Offshore Oil Corporation (CNOOC), Total and Tullow have jointly discovered 6.4 billion barrels of crude in the Albertine basin in western Uganda near the border with the Democratic Republic of Congo.

Albertine project’s FDI was to be made before end of 2018 but was delayed as Uganda’s government is yet to approve Tullow’s farm-down (partial sale) of assets to Total and CNOOC partly caused by a capital gains tax row.

Tullow agreed in January 2017 to retain 11.76 per cent in exploration area 1, 1A, 2 and 3A for consideration of $900 million upon transferring its 21.57 per cent stake to Total under the sale and purchase agreement.

CNOOC exercised pre-emption rights on the same SPA terms and conditions under joint operating agreement to buy 50 per cent of stake to be bought by Total. Each of three firms had 33.33 per cent equity in EA 1, 1A, 2 and 3A.

The South Lokichar project has the potential to influence the dynamics of Lamu Port South Sudan Ethiopia Transport corridor.

The flow of 100,000 barrels per day will deliver benefits associated with the crude pipeline and Lamu port on the coastline.

FID for the South Lokichar field is expected to be reached by the end of this year for Kenya to export commercial crude by 2022.

The South Lokichar crude project is facing delays as Kenya is yet to negotiate legally-binding heads of terms relevant to establish commercial structures for field development.

Legally binding heads of terms have confidentiality clauses with enforceable obligations and termination procedure outlined. Non-binding heads of terms covers details of proposed agreement and target completion dates.

Mr MacFarlane said tasks that must be completed for the South Lokichar basin to reach FID by the end of 2019 include commercial framework agreements with Kenya’s government, as well as agreements over land title and water supply.

“In Kenya, we need all levels of government to move faster and make decisions. We can only move as fast as the slowest government department,” he said.

[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

NGUGI: Child protection must go beyond statutory system

May 19, 2019
Why Juma used defunct law to hire REREC directors

Why Juma used defunct law to hire REREC directors

April 27, 2022

Subscribe.

Trending.

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF