Tullow Oil, Africa Oil and Total sign agreement with Kenyan government to develop crude oil facility

Tullow Oil Head of Terms Kenya
Mark MacFarlane ,senior Vice President of Tullow Oil addressing the media after signing of the Head of Terms. Photo: Twitter/MadiniKenya

The Petroleum and Mining Ministry have announced that oil firms Tullow Oil, Total and Africa Oil Corp have signed agreements with the Kenyan government for the development of a 60,000-80,000 barrels per day crude oil processing facility for oil discovered in the country’s north west.

The Heads of Terms (HoTs) agreements signed at the Ministry of Petroleum and Mining headquarters were for discoveries in Blocks 10 BB and 13T in South Lokichar Basin.

Turkana Country Senator John Kiyonga said that the HoTs provide a framework and commercial certainty required to move ahead with negotiating the fully termed upstream and midstream long form agreements ahead of the Projects’ Final Investment Decision (FID).

Speaking at the press conference, he said: “This phased approach brings significant benefits as it enables an early FID, takes advantage of the current low-cost environment for both the field and infrastructure dev and provides the best opportunity to deliver First Oil in a timeline that meets the Government of Kenya.

“Our expectations define our project by drawing out; the resources that will be developed within this agreement the obligations of each parties they also define Physical incentives such as the development of the Crude Oil Pipeline from Lokichar to Lamu and more,” he added.

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