Tullow Oil in its Trading Update for the period 27 July to 9 November 2016, announced that it expects the Joint Development Agreement (JDA) signed in October to set out a structure for the Kenyan Government and Joint Venture Partners in order to make headways with the development of the export pipeline expected to begin by year-end.

This announcement comes as the company and its JV partners; Maersk and Africa Oil, reported that progress is currently being made on the Kenya development project. Preparation they said, are ongoing for the upstream development Front End Engineering Design (FEED) at the Amosing and Ngamia fields.

According to Tullow, the JDA will permit the commencement of important studies such as FEED, Environmental and Social Impact Assessments (ESIA), along with studies on pipeline financing and ownership. The company added that the Early Oil Pilot Scheme (EOPS), which includes the conveyance of oil production from South Lokichar to Mombasa by road, has been approved by the JV partners. All is ready and is awaiting signature of agreements from the Government.

Exploration drilling is expected to recommence by the partners in Kenya next month with four wells to be drilled in the South Lokichar basin. They include two new exploration prospects and the appraisal of two of the existing finds, the Ngamia and Amosing fields. The wells to be drilled are Etete, Erut, Ngamia South and Amosing Updip, Oil News Kenya reports.

“First oil at the TEN field, offshore Ghana, on 18 August 2016 was a key milestone for Tullow. We have also made good progress with the Turret Remediation Project at Jubilee and coverage has been affirmed with our insurers for the repair and business interruption. As we exit 2016, we are well placed to begin the process of both refinancing and paying down our debt in 2017 while also focusing on growth through our exploration programmes and the commercialization of our assets in East Africa,” Aidan Heavey (photo), Chief Executive Officer, Tullow Oil Plc, said.

The Group will publish a Trading Statement and Operational Update on 11 January 2017. Full Year Results for 2016 will be announced on 8 February 2017.

Anita Fatunji