The Star (Nairobi)

Kenya to Reap Big From Tullow's Sh86 Billion Exploration Fund

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.

Ads by Google

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.