Tullow ended a decade-long quest to develop discoveries in April, when it sold the inland fields for $120 million to Gulf Energy, a Nairobi-based oil and gas trader. Tullow has announced divestments in recent months toward reducing its debt below $1 billion this year.
Under the terms of the transaction, Tullow will receive an initial cash payment of US$40 million upon completion, followed by another US$40 million by June 2026 or upon the approval of a Field Development Plan. A final US$40 million, contingent on future oil prices, will be paid over a five-year period starting in 2028, with any outstanding balance to be settled by 2033.
Kenya has renewed a contract to purchase fuel on credit from three state-owned Gulf firms by 24 months and renegotiated lower margins.
Saudi Aramco, Emirates National Oil Co. and Abu Dhabi National Oil Co. will continue to supply gasoline, diesel, kerosene and jet fuel under a 180-day credit plan, Energy and Petroleum Regulatory Authority Director-General Daniel Kiptoo said in an interview in the capital, Nairobi.
Commercial exports are expected in 2028.
EPRA has extended the Field Development Plan review to December 31.
The first oil shipment destined for Uganda docked at the port of Mombasa on Wednesday, marking an end of Kenyan oil market companies fuel transit business to the neighbouring country.
Two tankers carrying the maiden consignment of petroleum products directly imported by Uganda will dock at the Mombasa port next week, marking an end to the monopoly long enjoyed by Kenya oil marketers.
Uganda will start importing fuel directly from next month in a deal with Vitol Bahrain which the country hopes will supply cheap petroleum products.
Kenya on the Brink of a Petroleum Boom
Kenya’s prospects for establishing itself as a commercial oil producer have received a significant boost thanks to the energy firm Tullow’s latest commitment. Tullow has put a spotlight on the nation by identifying its oil project as a leading area for the company’s growth. The managing director of Tullow Kenya BV, Madhan Srinivasan, announced in March 2023 that an updated Field Development Plan (FDP) is underway. This ambitious strategy seeks to unlock 470 million barrels of oil equivalent (mmboe) and aims for a production zenith of 120 thousand barrels daily.
HE discovery of commercial oil and gas in Kenya, Somalia, Tanzania and Uganda has re-assessed the petroleum prospectivity of East Africa.
NAIROBI, (CAJ News) – THE recent death of six people after a gas explosion southeast of the capital Nairobi is a culmination of illegal practices in the petroleum sector.