British oil and gas exploration company Tullow will assume a 100 per cent equity position in the Project Oil Kenya development following the withdrawal of its two joint venture partners.
In an emailed statement, TotalEnergies and Africa Oil Corp, which held a 25 per cent stake each in the project, will withdraw from blocks 10BA, 10BB and 13T for differing internal strategic reasons.
Tullow holds a 50% stake in the south Lokichar field.
“With the strategic exit of Africa Oil Corp and Total Energies from the Project, Tullow will assume a 100 per cent equity position, subject to the Government of Kenya’s approvals and will continue its work with the Government and its host communities to make the region a significant energy-producing province,” Tullow said in a statement.
Tullow Kenya BV Managing Director Madhan Srinivasan disclosed that the firm is engaging strategic partners who have expressed an interest in the project based on its economic viability.
“As a result, Tullow’s working interest in these blocks will increase from 50% to 100%. The Board considers that owning 100% of the project creates more optionality, gives Tullow more flexibility in the ongoing process to secure strategic partners, creates a simpler Joint Venture Partnership and streamlines project delivery.” Srinivasan said.
Tullow will continue to work collaboratively with the government of Kenya and EPRA to get the FDP approved.
Africa Oil in a separate statement, said its “strategy has shifted to focus on production and high-potential exploration opportunities” elsewhere.
