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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tullow to Start Pumping in Kenya Next Year

UK-based Tullow Oil Plc (TLW) has announced it will begin pumping its first oil in Kenya as soon as next year, and that Kenya will begin exporting already in 2016.

Despite the looming impatience since Kenya’s first massive discovery by Tullow only last year, the pace of Kenya’s transformation has been rapid. It’s a much quicker pace than in neighboring Uganda, where Tullow struck oil over seven years ago.

If the Tullow’s production timetable is realized, it will mean that Kenya will soar past Uganda, and the pressure for Uganda will be increased significantly.

Related article: Egypt's Decline Could be Trouble for Energy Investors

The frustration in Uganda is palpable. Disagreements between the government and Tullow and partners have left the nearly 2 billion barrels discovered seven years ago untapped in the ground. And even when they do start producing, Kenya once again becomes the shining star because Uganda’s oil will have to be sent through pipelines to ports in Kenya—and that won’t be up and running until around 2018.

But back in Kenya, things couldn’t be better. According to Tullow’s estimates, the company has discovered more than 300 million barrels of oil equivalent resources in three discoveries in Kenya’s South Lokichar Basin. The plan now, with partner Africa Oil, is to explore for at least another year.

The partners still have to submit their field development plan to the government, according to Bloomberg.

By. Charles Kennedy of Oilprice.com


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