Tullow Oil and its joint venture partner Africa Oil have secured licence extensions from Kenya to continue exploration and production activities in South Lokichar until 2021.
The licence extensions mean the joint venture partners can now reassess the Project Oil Kenya and design an economic project at low oil prices while retaining the phased development concept.
It will also allow Tullow, Total and Africa Oil, to reconsider plans for the development.
Tullow Oil has been undertaking a six-month review of the viability of its operations in Kenya after a planned sale of its stake in the project fell through.
Tullow Makes US $575 Million From Sale Of Ugandan Assets To Total
The Joint Venture partners will in the coming months work closely with the government on land and water agreements, gaining approval of the Environmental and Social Impact Assessments and finalising the commercial framework for the project.
The successful completion will enable the submission of Field Development Plans to the government.
Kenya’s Ministry of Mines and Petroleum recently granted the company an extension for their 10BB/13T blocks exploration licences after approving its work programme and budget for the next year.
Rahul Dhir, Tullow Oil CEO said Kenya held a substantial resource, but there were many development challenges particularly low prices.
“I would like to thank the Government of Kenya for granting this extension which the Joint Venture partners will use to fully re-assess the development concept for this important project,’’ he said.
