The sports category has moved to a new website.

Tullow Oil set to pump Sh7 billion into its Kenyan operations in 2019 ahead of commercial production 2022

British company Tullow Oil plant in Turkana county, Kenya
  • In a trading update on Wednesday, Tullow said the additional capital will be spent on developing wells in Turkana County.
  • The company plans to commit to commercial oil production this year in a process that will include signing contracts with the Kenyan government.
  • The company continues to transport crude oil, an estimated 600 barrels per day, by road to Mombasa ahead of the planned small-scale (early oil) exports.

London-based Tullow Oil Plc plans to pump Sh7 billion in its Kenyan operations this year as the multinational steps up preparations for commercial production starting 2022.

In a trading update on Wednesday, Tullow said the additional capital will be spent on developing wells in Turkana County where the multinational discovered an estimated 1.2 billion barrels of oil reserves.

“The group's 2019 capital expenditure is expected to total approximately $570 million (Sh57.5 billion), comprising … Kenya pre-development expenditure of circa $70 million (Sh7 billion),” Tullow said.

ADVERTISEMENT

The company added that it plans to commit to commercial oil production this year in a process that will include signing contracts with the Kenyan government.

Tullow made substantial progress in Kenya in 2018 and continues to target final investment decision (FID) in late 2019 and First Oil in 2022,” the company said.

“This will require several key milestones to be achieved throughout 2019 including land acquisition, commercial frameworks and contract awards,”

The government has said Kenya’s oil production is profitable from $34 (Sh3,400) per barrel, indicating a potential windfall from the current international crude oil price of $58.

ADVERTISEMENT

At the moment, the company continues to transport crude oil, an estimated 600 barrels per day, by road to Mombasa ahead of the planned small-scale (early oil) exports in the coming months.

“This is expected to increase to 2,000 barrels of oil per day from April 2019. Currently, there are 60,000 barrels of oil stored in Mombasa with a maiden lifting expected in the first half of 2019.”

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

10 African cities with the highest crime index at the start of 2024

10 African cities with the highest crime index at the start of 2024

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Details of Ngina Kenyatta's luxurious restaurant

Details of Ngina Kenyatta's luxurious restaurant

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

10 African countries with the strongest military power in 2024

10 African countries with the strongest military power in 2024

ADVERTISEMENT