KENYA will be one of the major beneficiaries of $1 billion(Sh86 billion) exploration and appraisal budget for 2014 set by Tullow Oil. Announcing its financial performance, the British firm said it has 10 other tertiary basins to explore in Kenya and Ethiopia hence the need for the huge spend.
"A significant programme of some 40 exploration and appraisal wells in the coming two years will assess not only the South Lokichar Basin but up to a further six separate tertiary Rift basins across Tullow's Kenyan acreage," said the company in a press release.
In January, Tullow announced discovery of more oil and doubled the country's resource estimated to 600 million barrels of oil with a potential to rise up to one billion barrels. "Given the results to date in this single basin, Tullow considers that its acreage in Northern Kenya has the potential to be a significant new oil province," said the exploration firm.
Tullow said the $ 1 billion will be used to finance a significant exploration and appraisal campaign this year with high focus on Kenya, Ethiopia, offshore Norway, Mauritania and Guinea. The company reported a profit after tax of $216 million(Sh1.9 billion). Tullow plans to upgrade operations in Kenya to include set up of an export pipeline whose development is targeted to start around 2015.