British exploration firm Tullow Oil has posted a pretax profit of Ksh.1.02 billion for the period ended June, 30, 2021 amid the high costs of fuel in Kenya.
In a statement, the Group CEO, Rahul Dhir attributed the performance on strong operational performance in the first half of the year and a transformational debt refinancing positioning Tullow on a firm footing to deliver its business Plan.
“In Kenya, the revised development plan creates a robust project that has the potential to deliver material value to the Government of Kenya and other stakeholders. Through our operations, Tullow continues to deliver Shared Prosperity and to be an engine for economic and social change in the developing economies in which we work,” said Dhir.
A multinational oil and gas exploration firm says, its long-awaited revised development plan for oil production in Turkana creates a robust project that has the potential to deliver material value to the Government of Kenya and other stakeholders raising the project’s gross budget to about 373.6 billion shillings.
The company, which entered Kenya in 2010, said it has recommended changes to its initial design to incorporate a bigger processing facility and oil pipeline.
In redesigning its crude oil development project in Kenya, will see the company investing an additional Ksh.340 billion to increase its expected capital expenditure due to additional wells to be drilled and larger diameter crude oil export pipeline.
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Tullow Oil’s Board mentioned risks associated with COVID-19 that included insufficient liquidity and funding capacity, risk of asset integrity breach or major production failure and disruption to business due to inability to manage stakeholder relations among others
The company said it has monitored and mitigated plans to address such principal risks and uncertainties.
Further, there are opportunities to use the Kenyan national grid that is substantially powered by renewables and options to offset remaining emissions.
As per the previous development plan, the 825-kilometres long pipeline that will transport the crude oil from Turkana to the port of Lamu will be heated and buried to avoid long-term disruption.
The project will also require water for reservoir pressure which will be abstracted through a pipeline from the Turkwell Dam and will also be used to provide water to local communities.
Tullow believes that this project is an attractive commercial prospect for investors looking to access the East Africa oil and gas sector in both the upstream and midstream.
The firm indicated that a strategic partner will be secured ahead of a Final Investment Decision.
