Tullow announce Farm-down in Kenya, expects to make Final Investment Decision in Uganda in 2017

British-African Giant Tullow Oil Plc has expressed optimism about the status of its development projects in East Africa saying it’s nearing Final Investment Decision (FID)

The revelations are contained in the Company’s November Trading update, which details the current project status and the business projection of the last quarter of the company’s Financial year.

Technical teamTullow in the update announced it agreed to farm down 25% of its 65% operated working interest in Block 12A in the famous Lokichar basin to Delonex for a carry. The transaction agreement awaits government consent.

The Company says business in the region is getting rosy

“Our East African developments are progressing steadily with FID for both Kenya and Uganda now expected in 2017”, said Tullow Chief Executive Aidan Heavey.

In an earlier statement to the media in South Africa,  Heavy said company’s plan to delay Final Investment Decision on a new oilfield project in Uganda was attributed to the nation’s indecision on the Oil Pipeline route.

“You need a pipeline route firmed down and then you need to get FID. So FID probably in early 2017 and then three years later, you would have first oil,” Heavey said at the Africa Oil Week Conference in Capetown South Africa

Meanwhile Uganda’s production target date still stands at 2018. However, the country still remains undecided on the crude oil pipeline Options available.

In Kenya, the company says it has continued to focus on appraisal of the South Lokichar basin to test the extent of the oil discoveries. Kenya Major wells; Ngamia, Amosing, Twiga, Ekales and Agete fields have all now been appraised and reservoir data for the field development plan is being evaluated.

“The production phase of the Extended Well Testing (EWT) programme has been completed at the Amosing field and is ongoing at the Ngamia field”, reads the statement.

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