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- Tullow announced Wednesday that the additional capital would be spent on the development of wells in Turkana County.
- The company plans to commit to producing commercial oil this year as part of a process that includes signing contracts with the Kenyan government.
- The company continues to deliver crude oil by road to Mombasa (about 600 barrels per day) before planned small-scale exports (early oil production).
London-based Tullow Oil Plc plans to release 7 billion shillings from its operations in Kenya this year, as the multinational intensifies its preparations for commercial production starting in 2022.
In commercial news on Wednesday, Tullow said the additional capital would be spent on developing wells in Turkana County, where the multinational has discovered oil reserves estimated at 1.2 billion barrels.
"The group's capital expenditures for 2019 are expected to total about 570 million dollars (57.5 billion shillings), or … development expenditures of about 70 million dollars (7 billion shillings) in Kenya," Said Tullow.
Aiden Heavy, boss of Tullow
The company added that it was considering engaging in commercial oil production this year as part of a process including signing contracts with the Kenyan government.
"Tullow has made substantial progress in Kenya in 2018 and continues to aim for the final investment decision (FID) at the end of 2019 and First Oil in 2022 ", the company said.
"This will require several milestones throughout 2019, including land acquisition, commercial executives and contract awards",
Turkana Oil trucks
The government said that Kenya's oil production was profitable at 34 dollars (3400 shillings) per barrel, which would indicate a potential windfall of the current price of international crude oil of 58 dollars.
At present, the company continues to route crude oil, estimated at 600 barrels per day, to Mombasa by road, in anticipation of small-scale (early oil) exports expected in the coming months. come.
"This is expected to rise to 2,000 barrels of oil a day as of April 2019. At present, 60,000 barrels of oil are stored in Mombasa. A first round is scheduled for the first half of 2019. "
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