Tullow oil and its partners are anticipating an investment worth KSh309 billion to fund the final drilling phase.
These funds will be an addition to the $2 (KSh206) billion spent in initial exploration, discovery, and ESOP in the past ten years.
The exploration will be producing 70,000 barrels of oil per day from 3 oil wells.
According to Martin Mbogo, Managing Director Tullow Oil Kenya, this investment is one of the biggest single private sector investments in Kenya.
The second phase of the project will source funding through debt and equity from partners. Mr. Mbogo believes that Tullow can raise the remaining $3 billion given it raised the initial investment of $2 billion.
The petroleum PS hinted possibilities of listing oil exploration activities on several stock markets.
Part of the project’s future entails building a pipeline network to transport crude oil from Turkana’s oil Basin to the Lamu Port for export.
The pipeline will boost the movement of crude oil, allowing explorers to move as much as 80,000 barrels of oil per day.
Additionally, the 18 inches thick 821 km long pipeline will follow the Lamu Port – South Sudan – Ethiopia Transport corridor (LAPSSET). This will open up the northern part of Kenya for investments and development. Finally, the construction of the pipeline will happen after the Final Investment Decision (FID).
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