Tullow‘s future oil investment in Kenya awaits audit being done by UK consulting firm, Gaffney Cline Associates (GCA). Gaffney, Cline & Associates is a petroleum consulting company headquartered in Alton, the United Kingdom, with offices in London, Houston, Singapore, Buenos Aires, Sydney and Moscow. Its audit comments are expected to define the final commercial development decision for Tullow and its Joint Venture partners on the Turkana based oil fields, which will shape Kenya’s future of going commercial on its oil reserves. The current stable global crude prices is also expected to weight in.
The audit comes ahead of Tullow’s detailed project plan discussions with the Kenyan government to ramps up its operations in Africa, with Kenya being among its key exploration base, amid picking crude oil prices.
“The technical work is complete, and the resource volumes are being audited. Tullow and its JV Partners expect to provide a project update to the market in the second half of 2021,” said the firm.
Interest production
In April last year, oil prices dropped to a 20-year low, touching $15.98 (Sh1,729 ) a barrel. This is its lowest point since mid-1999. As of yesterday Brent crude was quoted at a high of $74.70 (Sh81.08), as oil producing countries move to cut supply to manage prices.
“Tullow has made excellent operational and financial progress in the first half of 2021 and now has a strong financial footing and we are making very good progress in delivering on our highly cash generative business plan and continuing to reduce our debt,” said Rahul Dhir, CEO, Tullow Oil plc.
Group working interest production in the first half of 2021 averaged 61,200 barrels of oil per day(bopd), a common unit of measurement for volume of crude oil, which it says is in line with expectations. Full year 2021 guidance has been revised to 55,000 – 61,000 bopd (from 60,000 to 66,000 bopd). The guidance reflects the sales of the Equatorial Guinea assets and the Dussafu Marin permit and first half delivery.
“The Kenya project has been through a full redesign using data from the 2018 -2020 Early Oil Pilot Scheme (EOPS) being fed into the model which is providing better understanding of both the resource and the optimum development plan,” the firm notes.
