Africa-focused Tullow Oil expects the average amount of crude oil transported from Turkana’s Early Oil Pilot Scheme (EOPS) to Mombasa to increase in the second quarter of 2019, the firm announced on Wednesday.
According to the oil and gas firm an average of eight trucks are dispatched to Mombasa from Turkana every two days, transporting approximately 600 barrels of oil per day (bopd). This is expected to increase to 2,000 bopd from April 2019 which translates to a 233% increase.
In addition, the firm stated that it would inject Ksh. 7 billion into its Kenyan operations.
“The Group’s 2019 capital expenditure is expected to total approximately $570million, comprising…….Kenya pre-development expenditure of $70 million,” Tullow said in a trading update released yesterday.
Similarly, Tullow revealed that they are in the process of looking for investors as they make preparations to commit to commercial oil production in 2022.
“Tullow made substantial progress in Kenya in 2018 and continues to target Final Investment Decision (FID) and First Oil in 2022. This will require several key milestones to be achieved throughout 2019 including land acquisition, commercial frameworks and contract awards,” Tullow said.
The firm, through its Chief Executive Officer (CEO) Paul Mcdade, also underlined the oil company’s ambition to further expand into the African energy scene.
“Tullow is well-placed to deliver on its growth ambitions. In 2019, we will increase oil production in East and West Africa and drill the first wells in an exciting exploration campaign in Guyana,” the Tullow CEO said in the trading update.
“Despite a volatile oil price, Tullow’s improved balance sheet, low cost production and strong cash flow generation, even at lower oil prices, will allow us to both invest for growth and pay a sustainable dividend to investors.”
Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW). The Group has interests in over 85 exploration and production licences across 17 countries which are managed as three business delivery teams: West Africa, East Africa and New Ventures.