Petroleum Africa
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Wednesday, April 30, 2014
Kenya may see its first plan for an oil development submitted next year. Tullow Oil and Africa Oil Corp. are set to submit development plans to the Kenyan government in late-2015 for their oil discovery in the northwest of the country.
“We are expecting to submit our field development plans to the government in Q4 of 2015,” Robin Sutherland, Tullow Oil’s exploration manager for sub-Saharan Africa told attendees at an industry event taking place in Nairobi. Discussions were underway on who will lead the development of a pipeline to transport the crude oil to Lamu on the Kenyan coast, he said.
Kenya’s plans for oil production have moved fast since the Tullow/Africa Oil discovery in the South Lokichar Basin was announced in March 2012, unlike Tullow’s reserves in Uganda which were discovered in 2006 but still awaiting development.
Kenya’s Energy and Petroleum Cabinet Secretary Davis Chirchir said the government was in the process of soliciting expressions of interest for the pipeline in three segments. The three sections will be from Hoima in Uganda, linking to Lokichar, from South Sudan to Lokichar, and from Lokichar to Lamu, he said during a speech read on his behalf at the conference.
VP for business development at Africa Oil, James Phillips, said the discoveries in the Lokichar Basin so far had already met the minimum amount of oil required for commercial development, and they were confident the figures would rise further. “Commercial threshold resources have been exceeded in the South Lokichar Basin. We know we have exceeded the commercial threshold and that it is going to get higher and higher,” he said.
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