British oil company Tullow is auditing oil volumes in Kenya’s reserves. Rahul Dhir, chief executive at Tullow Oil Plc. said the move prepares the company to have an extraction plan before its licence expires at the end of the year.
“Resource volumes are now being audited and a detailed project plan will be prepared for discussion with the Ministry of Mining and Petroleum and the Government of Kenya,” said Rahul Dhir, chief executive at Tullow Oil Plc.
Kenyan finds are estimated at 1.5 billion barrels of oil in shallow, productive reservoirs with light oil. However Tullow has found it difficult to exploit it profitably at less than US $50 a barrel after the collapse of global prices. The prices have surged back to US $74 for a barrel of Brent crude with expectations of a further rally which may boost the company’s prospects.
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Force majeure
The company’s operations were hit by the coronavirus pandemic last year which threatened to invoke a force majeure. The government however extended the firm’s licence to the end of the year if the firm together with its partners Africa Oil and Total deliver an agreed work programme and budget by December 2021.
“We have been working to deliver a full field development plan that is sustainable and economic at low oil prices. The technical work is now complete and has been aided by the dynamic data gathered through the Early Oil Production Scheme which ended in 2020. The early monetisation of oil project whose planned period of execution was 2011 -2022 is at 1% completion as at May 31, 2021,” said Dhir.