Thursday 23 November 2017

Tullow Oil doubles its estimate for Kenya discovery

Brian Swint

DUBLIN-listed Tullow Oil has doubled its estimate for the volume of oil it thinks two discoveries in Kenya will contain.

The finds hold more than 250 million barrels of oil, the company said yesterday after tests at the Ngamia-1 and Twiga South wells in the Lokichar basin.

It also made a discovery at Kenya's Etuko-1 well, while the Sabisa-1 well in Ethiopia encountered oil and heavy gas.

Tullow is among oil producers stepping up exploration following a four-year increase in the price of crude.

The company, with partner Africa Oil, will drill about 10 wells this year in Kenya and Ethiopia to explore the Turkana Rift Basin.

It plans 20 wells worldwide in the second half of the year, including in Mozambique, Mauritania, French Guiana and Norway.

"We're very pleased to report major progress in Kenya and Ethiopia," said chief financial officer Ian Springett.

"We've got an exciting program in the second half, looking at new basins as well as getting on in countries where we've already discovered oil."

The London-based company lowered its production forecast for the year to as much as 90,000 barrels of oil equivalent a day from 92,000 barrels a day, citing output halts at its West African projects. First-half volumes totalled 88,600 a day.

The company was up 1.94pc by early afternoon in London trading to £10.53 (€12.39). (Bloomberg)

Irish Independent

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