NAIROBI, Kenya, Jan 26 – Global independent oil and gas, exploration and production firm Tullow Oil Plc has unveiled plans to invest Sh1.24billion in finetuning the Field Development Plan (FDP) and related local operations under Project Oil Kenya.
This is even as 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.
“Tullow 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 finalise the FDP,” said Tullow Oil plc Chief Executive Officer Rahul Dhir.
The firm’s financial update indicates that the Group generated total revenue, including the cost of hedging, of USD1.7 billion(Sh211.3billion), at a realised average oil price of USD102(Sh12,683) per barrel before hedging and USD87(Sh10,818) per barrel after hedging.
Free cash flow for the full year 2022 is expected to be USD267 million(Sh33.2billion), 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.
