Chinese oil investors Sinopec are reportedly in talks with Tullow Oil to take over part of exploration in the Turkana area of Kenya after two joint partners quit the project.
Experts have expressed pessimism over the project that is being abandoned by other powerful companies due to lack of projections in profitability.
Reports indicate that Tullow Oil is cash strapped and cannot take the exercise off the ground.
The reasons advanced by Africa Oil include concentrating in other profitable regions while Total indicated that it had other monetary options to consider.
Africa Oil and Total owned 25% in three blocks located in the South Lokichar Basin.
Africa Oil President and chief executive Keith Hill said early this week: “We have taken the decision to exit our Kenya concessions as our strategy has shifted to focus on production and high potential exploration opportunities, including our Orange Basin portfolio where we are now appraising the exciting Venus discovery, offshore Namibia.”
Kenyan government officials said two Indian government companies and Sinopec were in talks with Tullow Oil to partner in the project.
“The two government-owned oil firms, the Oil and Natural Gas Corporation Videsh of India and Sinopec of China are reportedly in talks with Tullow Oil to acquire stakes in the Turkana oil project,” a Kenyan newspaper reported.
Tullow seemed to confirm the developments in an interview with Kenyan media thus, “The prospective strategic partners have been informed of current development and remain engaged as the detailed farm-out discussions continue with a number of companies.”
SINOPEC IN UGANDA
Recently, TotalEnergies EP which is undertaking oil production in Uganda’s Albertine region awarded the Engineering, Procurement, Supply, Construction, and Commissioning (EPSCC) tender to a consortium of McDermott/Sinopec International Petroleum Service Corporation for development of the Tilenga oil project—oil fields in Nwoya and Buliisa districts.
The deal worth about $2 billion will see the Tilenga project produce up to 200,000 barrels per day (kbpd) of crude oil out of six oil fields tapped by 31 well pads which will be connected to the proposed Central Processing Facility (CPF), where crude oil is separated from impurities such as water and sand before being fed into the proposed East African Crude Oil Pipeline (EACOP), or the greenfield refinery.
The six oil fields: Ngiri field is expected to produce about 50,00 barrels per day (kbpd); Jobi-Rii 70,000kbpd; Kasamene 20,000 kbpd; Wahirindi 3,250kbpd; Kigogole 20,000kbpd; and Nsoga 20,000kbpd.
Do you want to share a story, comment or opinion regarding this story or others, Email us at newsdayuganda@gmail.com Tel/WhatsApp........0726054858
Discussion about this post