Posted on :Friday , 11th September 2020
Kenyans will have to wait until after 2025 for petrodollars from Turkana oil fields to start trickling in after the government lengthened the exploration timeline for Tullow.
The British oil explorer said it had allowed another 15 months for exploration phase of the Turkana oil project, essentially pushing ahead production timelines and extending the long-awaited final investment decision.
Tullow in a statement following its half year results to June 2020 said the extension was part of the deal that led to its lifting of a force majeure on the project last month.
The explorer said it had suspended its intended sale of stake in the project without specifying its next move on the intended farm down for a 50 % shareholding in blocks 10BB and 3T in the Turkana.
"Kenya has agreed to an initial extension to the second additional exploration period for the 10BB and 13T licence blocks until 31 December 2020 with a final extension until 31 December 2021, contingent on an agreed work programme and budgets. Separately, the farm down process has been suspended while the joint venture partners complete a comprehensive review of the development concept to guarantee it continues to be robust at low oil prices, and also consider the strategic alternatives for the asset," Tullow said in a statement.