Africa Oil has revealed plans to cut back exploration this year as a result of the uncertainty in global prices as it has spent $207 million on its operations in Kenya.

Africa Oil and Tullow plans to drill only one well in 2016, as a result of the declining oil prices in the global market which is demoralizing investment in new resources.

According to the company, for 2016 the only exploration that would be performed is the existing drilling of a well in Kenya's Kerio Valley.

“Outside of the South Lokichar Basin, the Africa Oil-Tullow joint venture new basin opening exploration drilling programme is focused on the Cheptuket well in Block 12A (Kenya), a commitment which is currently drilling,” the company said hoping that prices.

Just before the end of 2015, Africa Oil carried out a capital raising campaign where it sold interests in its Kenyan and Ethiopian blocks to Maersk. The company gathered $434 million through the selling of 25% interest in all of its Kenyan blocks as well as in the Ethiopia Rift Basin block and a 15% interest in the Ethiopia South Omo blocks.

“An additional $75 million (Ksh7.5 billion) development carry may be available to Africa Oil upon confirmation of existing resources. An updated assessment of contingent resources is currently ongoing,” Africa Oil told the East African.

Anita Fatunji