Tullow Oil, an international independent oil and gas exploration group, has confirmed Kenya’s oil production potential and plans to kick off development of the valuable resource in the early 2020s.
Speaking as the company announced its full-year results for the year ended 31 December 2017, Mark MacFarlane, Executive Vice President for East Africa, commented that Kenya’s South Lokichar basin appraisal programme has confirmed material oil resources to support substantial oil production and an export pipeline to the Kenyan coast pending a Final Investment Decision (FID) which is planned for 2019.
“The proposed development plan reflects the Partnership’s desire to sanction the project in a manner that is commercially robust, ensures the earliest possible FID and First Oil and supports the required infrastructure given the location of the South Lokichar basin some 750 kilometers from the Kenyan coast,” he explained in a statement issued this week.
A total of 21 appraisal wells have been drilled in the country’s South Lokichar basin. Tullow has also conducted extended well tests, water injection tests, well interference tests and water-flood trials, all of which have proved invaluable for planning the development of the oil fields.
MacFarlane stated that the appraisal campaign has firmed up the Group’s resource estimates and improved Tullow’s understanding of the subsurface at the key producing fields.
Following a full assessment of all the exploration and appraisal data, Tullow and its Joint Venture Partners have proposed to the Government of Kenya that the Amosing and Ngamia fields should be developed as the Foundation Stage of the South Lokichar development. This stage would include a Central Processing Facility (CPF) and an export pipeline to Lamu, an area in Kenya’s coastal region.
“This approach brings significant benefits as it enables…taking full advantage of the current low-cost environment for both the field and infrastructure development and provides the best opportunity to deliver First Oil in a timeline that meets the Government of Kenya expectations,” MacFarlane stated.
The Foundation Stage is currently planned to involve an initial 210 wells through 18 well pads at Kenya’s Ngamia area and 70 wells through seven well pads at the country’s Amosing site.
MacFarlane confirmed that following Kenya’s extended election period last year, Tullow and its Joint Venture Partners have re-engaged with representatives of the country’s government on the overall approach and timelines for progressing the development.