Tullow submits final oil development blueprint
UK based oil explorer Tullow Oil has submitted the final development blueprint in relation to its oil development project in the country.
The blueprint, known as final development plan (FDP), was deposited with the Ministry of Petroleum in early December ahead of the end-year deadline.
Subsequently, the Ministry is expected to undertake a review of the blueprint from whose result will set the path for a potential final investment decision on the local oil exploits.
The submission of the FDP comes on the backdrop of the raised stakes for the project following a redesign of the development in the first half of 2021.
Tullow for instance now sees a greater daily output from the project at 120,000 barrels (bbls) from 72,000 bbls previously.
Further, the review estimated larger volumes of oil deposits with a gross of 585 million barrels from 433 million barrels previously.
The Anglo-English explorer now estimates spending of roughly Ksh.384.9 billion ($3.4 billion) to first commercial oil including the digging of additional wells and the development of a pipeline connecting the Turkana oil fields and the port of Lamu.
At the same time, Tullow estimates it will cost about Ksh.2,490 ($22) to produce a barrel of oil.
In October, Tullow said it was stepping up its search for a strategic partner to help it implement its development plan.
The raised stakes for the project served to clear up doubts over the viability of the project which has remained largely in the exploration stage since the discovery of oil in the Lokichar basin in the early 2010s.
"Based on the revised plan, 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. It is intended that a strategic partner will be secured ahead of a Final Investment Decision,” Tullow said in a trading statement on September 15.