Tullow Oil has announced that it plans to step up drilling activities in Kenya by the end of 2016 and expects first oil by the second half of 2017.

“Early oil is essentially an extended test to understand the reservoirs and test the above-ground conditions. We are looking at 2,000 barrels of oil a day. We will resume additional drilling towards the end of 2016 to increase our resource levels. We still have acreage that is unexplored. We still need to understand our reservoirs a lot better. So our activity level in the field is likely to tick up towards the end of this year,” Martin Mbogo, Tullow Oil Kenya’s country manager said.

The company anticipates to have concluded field development by 2021 and begin producing 80,000 to 100,000 bopd.

At the start of 2016, Tullow revealed that by 2017 it would reduce global capital spending by two-thirds as a result of the decline in global oil prices since mid-2014 which has affected companies throughout the oil and gas industries, causing bankruptcies, job cuts and lesser expenditures in exploration and production activities.

Mbogo disclosed that compared to the company’s operations in other countries, Tullow has been very active in Kenya, due to the low oil prices trend when the company was accomplishing the final stage of its exploration and appraisal campaign and moving into the development phase.

“That development… phase required that we be less active in the field and more active in discussion and negotiations with government. We are at a good place now and keen to get back on course. We came into Kenya fully understanding the political and economic risks that exist,” he told How we made it in Africa.

Anita Fatunji