Tullow has a track record of discovering significant oil resources in East Africa. The Group first started exploring in Uganda in 2006, successfully opening the Lake Albert Rift Basin, which has discovered resources of some 1.7 billion barrels of oil. Tullow has taken its knowledge and understanding of the geology in Uganda across into neighbouring Kenya. Since 2012, Tullow’s successful exploration and appraisal drilling campaigns in Kenya have resulted in the opening of a second new tertiary rift play in the South Lokichar Basin. Following a full assessment of all the exploration and appraisal data, Tullow estimates that the South Lokichar basin contains the following recoverable resources: 240 – 560 – 1,230 mmbo (1C–2C–3C) from an overall discovered STOIIP of up to 4 billion barrels. Watch the video below to see how Tullow, its Partners and the Government of Kenya are working togeether to develop these resources through Project Oil Kenya.
Tullow and its Joint Venture Partners have proposed to the Government of Kenya that the Amosing, Ngamia and Twiga fields should be developed as the Foundation Stage of the South Lokichar development. This stage would include a 60,000 to 80,000 bopd Central Processing Facility (CPF) and an export pipeline to Lamu. This phased approach brings significant benefits as it enables an early FID, takes advantage of the current low-cost environment for both the field and infrastructure development and provides the best opportunity to deliver First Oil in a timeline that meets the Government of Kenya (GoK) expectations. The installed infrastructure from this initial phase can then be utilised for the optimisation of the remaining South Lokichar oil fields, allowing the incremental development of these fields to be completed at a lower unit cost post-First Oil.
The foundation stage will target volumes of around 210 mmbo of the total estimated 2C resources of 560 mmbo and a plateau rate of 60,000 to 80,000 bopd. The incremental development of the remaining 2C resources and the significant upside potential is expected to increase plateau production to 100,000 bopd or greater.
Good progress continues to be made on development project and the upstream and pipeline Front End Engineering and Design work is progressing to plan and is expected to be completed in the first quarter of 2019. Environmental and Social Impact Assessments are also on schedule for submission to the regulators in the second quarter of 2019. Tullow, its Joint Venture Partners and the Government of Kenya remain focused on targeting FID in late 2019 and First Oil in 2022.
Early Oil Pilot Scheme (EOPS)
In early June 2018, the transfer of stored crude oil to Mombasa, by road, commenced. The EOPS will transport oil produced from injection and production testing at the Ngamia and Amosing fields. Trucks are currently transporting approximately 600 bopd and this is expected to increase to 2,000 bopd once the EOPS is fully operational in April 2019. So far, over 70,000 barrels of oil have been transported to Mombasa. A maiden lifting of Kenyan crude oil is expected in mid-2019. Tullow has begun to market Kenya’s low sulphur oil ahead of this first lifting with initial market reactions being very positive.