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Tullow Needs Water Deal to Move Forward in Kenya

Monday, February 25, 2019

Tullow Oil is waiting to close a crucial deal with local Kenyan authorities to move forward on full production in the East African country. The Irish-independent needs authorities to authorize a deal that will allow it to pump water to pressurize oil wells.

Tullow says the deal may delay its plans until Q3.

Martin Mbogo, Tullow’s MD in Kenya, said the company and partner Africa Oil, are working toward FID by year end and hoped the water deal would be reached by mid-year.

“I would probably realistically put it more for Q3 in terms of landing that agreement,” Mbogo was cited by Reuters as saying, referring to the deal organizing the way Tullow can access a body of water straddling two counties in northwestern Kenya. “(It’s) one of those things we absolutely need before we can get to FID.”

Another milestone to pass is land acquisition for infrastructure around the oil fields and the 820-km pipeline to the Indian Ocean for which it plans to send out construction tenders within the coming weeks.

The government recently gazetted land it wants to buy in order to lease it to the oil partners, a Reuters report said.