Tullow Oil, an international mining company with operations across the African continent, has concluded the current phase of exploration and appraisal drilling in Kenya’s South Lokichar Basin
The Basin, which is an area that is part of the East African Rift system, has been the location of a series of oil discoveries by Tullow Oil and its partners.
The firm said it will now shift its focus to an Early Oil Pilot Scheme (EOPS) and the development of the discovered resources.
“I am pleased to report that Tullow continues to make good operational and financial progress,” said Paul Mcdade, Chief Executive Officer of Tullow Oil.
Commenting on the advancement, Mcdade stated that in East Africa, Tullow’s ongoing projects in Kenya and Uganda were making steady progress towards final investment decisions with its Kenyan business beginning an important shift from exploration to development.
“Successful exploration wells drilled in the programme were the Erut-1 well that tested and proved the northern extent of the basin and the Emekuya-1 well that further de-risked the Greater Etom structure and the northern area of the basin,” Tullow said in a statement issued on November 8th, 2017.
The mining company stated that the two remaining exploration wells drilled included the Etiir-1 well, which although dry, helped to understand the westerly extent of the Greater Etom Structure, and the Ekales-3 well which tested an undrilled fault block adjacent to the Ekales field. While reservoir and oil shows were encountered, the well was deemed non-commercial.
According to Tullow, appraisal drilling has been a key focus of the programme in 2017.
The firm stated that activity will now move to focus on collecting more data from the fields. Produced oil will initially be stored, until all work is completed and necessary consents and approvals granted for the transfer of crude oil to Kenya’s Mombasa County by road.
Tullow is now reviewing all the data from the South Lokichar Basin and in the first quarter of 2018 intends to give its assessment of Contingent Resources and plans for developing the basin.
A Joint Development Agreement (JDA), setting out a structure for the Government of Kenya to progress the development of an export pipeline, was signed on October 25th, 2017. The deal allows important field and environmental studies to commence in the first quarter of 2018.