Nairobi — TULLOW Oil is set to invest more than US$2 billion in the upstream and pipeline ahead of oil production in Kenya.
Total gross capital expenditure (CAPEX) associated with the foundation stage is expected to be $1,8 billion in the upstream and $1,1 billion for the pipeline.
The foundation stage is currently planned to involve an initial 210 wells through 18 well pads at Ngamia and 70 wells through seven well pads at Amosing.
It is anticipated the foundation development will commence in the second quarter of 2018, with final investment decision (FID) targeted for 2019.
Production of First Oil is set for 2021/22.
The United Kingdom-headquartered Tullow and its joint venture partners have proposed to the Government of Kenya that the Amosing and Ngamia fields should be developed as the foundation stage of the South Lokichar development.
Mark MacFarlane, Executive Vice President for East Africa, said the South Lokichar basin appraisal programme had confirmed material oil resources to support substantial oil production and an export pipeline to the Kenyan coast pending a FID.
"The proposed development plan reflects the Partnership's desire to sanction the project in a manner that is commercially robust, ensures the earliest possible FID and First Oil and supports the required infrastructure given the location of the South Lokichar basin."
It is located some 750 km from the Kenyan coast.