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Thursday, November 17, 2016
Africa Oil and JV partner Tullow Oil progressed the full field development work in Kenya during Q3. An Early Oil Pilot Scheme (EOPS) to transport oil from South Lokichar to Mombasa utilizing road, was approved by the JV partners. This will provide technical and non-technical information that will assist in full field development planning.
The EOPS would utilize existing upstream wells and oil storage tanks to initially produce 2,000 bpd around mid-2017, subject to agreement with national and local governments.
In addition, the partners signed a MoU with the government of Kenya confirming their intent to jointly progress the development of a Kenyan crude pipeline. The pipeline will ship crude from South Lokichar to the port of Lamu.
The pipeline Joint Development Agreement is currently being finalized and is expected to be signed in Q4. The JV partners continue to progress the technical, environmental and social studies and tenders required to proceed to FEED for both the upstream and pipeline projects. Both FEED studies are expected to start in early-2017. It is expected that any Kenya standalone pipeline plan will take into consideration the potential to accommodate the transportation of additional oil resource from bordering East African countries.
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