Tullow Oil has raised its stakes for its Kenyan Oil investment affirming the commercial viability of the energy project.
According to the firm, which gave its half-year operations update on Wednesday, the Kenyan oil investment is now projected to produce 120,000 barrels of oil per day from an earlier estimate of 72,000 barrels.
Reuters reported that Tullow and its joint venture partners have completed the redesign of the Kenya development project, noting that the total gross investment for the project is expected to be about $3.4 billion (Kes374 billion).
The company, which entered Kenya in 2010, has also revised the pool of Kenya’s oil deposits to an estimated 585 million barrels from a lower 433 million barrels.
Tullow Oil says the project’s upstream development, pipeline construction to early oil will now cost $3.5 billion (Kes385 billion) from a lower projection $2.7 billion (Kes297 billion) after the expansion of the projects capacity.
Tullow entered Kenya eleven years ago after signing agreements with Africa Oil and Centric Energy to gain a 50 per cent operated interest in five onshore licenses; 10BA, 10BB, 10A, 12A and 13T.
At the moment, Tullow controls half of the operated interest in Blocks 10BA, 10BB, 13T and 10o per cent in Block 12B. In June 2019 Tullow exited non operated Block 12A.