Tullow Oil plc (Tullow) targets to start transferring 2,000 barrels of crude oil from Turkana to Mombasa starting April.
“This is expected to increase to 2,000 bopd from April 2019. Currently, there are 60,000 barrels of oil stored in Mombasa with a maiden lifting expected in the first half of 2019,” said the UK Based Oil company in its trading statement and operational update issued Wednesday.
It stated that the transfer of stored crude oil from Turkana to Mombasa by road continues as part of the Early Oil Pilot Scheme with an average of eight trucks being dispatched every two days, transporting approximately 600 bopd.
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In June 2018, Kenya flagged off trucks loaded with crude oil from Ngamia 8, in the Turkana oil fields as part of the Early Oil Pilot Scheme. Kenya is using the Early Oil Pilot Scheme, which will soon be followed by the Full Field Development phase, to establish itself as a crude oil exporter in the region and provide valuable information for future exploration and development.
The firm further said it aims for several Kenya key milestones to be achieved in 2019 including land acquisition, commercial frameworks, and contract awards.
“Tullow made substantial progress in Kenya in 2018 and continues to target FID in late 2019 and First Oil in 2022. This will require several key milestones to be achieved throughout 2019.”
It is banking on increased production in Ghana and East Africa to improve its global production to 93,000-101,000 barrels in 2019 up from 88,200 barrels in 2018.
“Tullow is well-placed to deliver on its growth ambitions. In 2019, we will increase oil production in West Africa, target Final Investment Decisions in East Africa and drill the first wells in an exciting exploration campaign in Guyana,’’ Tullow Oil Plc chief executive Paul Mcdade.
Tullow Oil FY oil production 88.2K bopd in-line with 87-91K guidance. Expects 93-101K in 2019. Expects FY18 revenue c. $1.8bn, cash flow c. $410m. Net debt -11.4% YoY. FY CapEx of c. $425m (7.6% less than anticipated) and 2019 CapEx ~$570m. Dividends no less than $100m in 2019.
— Mike van Dulken (@MikeVanDulken) January 16, 2019
Negotiation is still ongoing in Uganda between the oil giant, its partners in Uganda, Total and CNOOC Ltd and Government of Uganda on the farm-down which is now expected to be completed in the first half of 2019.
