After issuing a Force Majeure, Tullow and its partners have withdrawn it paving way for the resumption of oil exploration for blocks 10BB and 13 in the South Lokichar basin scheme in Kenya.
“The lifting of Force Majeure notices has been facilitated by the improvement in COVID-19 pandemic restrictions worldwide and the resumption of local and international flights, allowing the restart of the various workstreams under the Project,” said Africa Oil Corp, Tullow’s operating partner in a statement.
In May, they declared Force Majeure on its main licences in Kenya citing the effect of restrictions caused by Covid-19 on Tullow’s work programme and tax changes.
However, Africa Oil Corp says they are still engaging the Government on the way forward on the 14 percent Value Added Tax (VAT) on goods imported or purchased locally by the firm.
“The joint venture partners are also continuing their dialogue with the Government of Kenya to determine the best way forward for this strategic project, including discussions regarding how the incentives previously granted by the government to the Project shall be facilitated,” said Africa Oil Corp.
On the other hand, Tullow plans to find a buyer for a 20 percent stake in the South Lokichar project where it holds a 50 percent stake in three blocks.
Together with Total, they contracted French bank Natixis to run the joint sale process for Blocks 10 BA,
The Amosing, Ngamia and Twiga fields in the South Lokichar basin are estimated to contain up to 560 million barrels of oil resources.
