Tullow eyes production in 2022

Kenya is set to start commercial production of crude oil in 2022 after completing an appraisal of its south Lokichar base.

According to British exploration firm Tullow vice president Mark McFarlane, there is 90 percent chance of recovering 250 million barrels of crude oil from the Ngamia 1 and Amosing wells.

“Tullow and its Joint Venture Partners have proposed to the Government of Kenya that the Amosing and Ngamia fields should be developed as the Foundation Stage of the South Lokichar development. This stage would include 60,000 to 80,000 barrels of crude oil Central Processing Facility and an export pipeline to Lamu,”

Tullow is currently appraising its finds and is expected to make a final investment decision in 2019.

Tullow has maintained its exploration activities have a possible recoverable base of 750 million barrels of crude oil but says further exploration could lead to discovery of four million barrels of oil.

Mr Macfarlane added, “The South Lokichar basin appraisal program has confirmed material oil resources to support substantial oil production and an export pipeline to the Kenyan coast pending a Final Investment Decision which is planned for 2019.”

Kenya currently has 70,000 barrels of crude oil stored in the south lokichar base expected to be evacuated through the early oil project scheme.

“Initial interactivity testing has started at Ngamia-11 and oil production and water injection facilities are being constructed in the field ready to commence production/injection in the first quarter of 2018,”said Macfarlane.

The early oil pilot scheme was expected to see the country start commercial production of oil last year but faced delays due to the lengthy process of getting companies that would move crude oil from Turkana to Mombasa.

Tullow said oil produced is initially stored until all necessary approvals are granted and infrastructure installed for the transfer of crude oil to Mombasa.