Kenya plans to buyback a 20% interest in Turkana Oil
Posted on : Friday, 10th November 2023
Kenya intends to repurchase up to 20 percent in the Turkana oil project in what could ultimately conclude whether the public authority supports the task's changed improvement plan and accessibility of assets.
On 02 November 2023 Thursday, Energy and Petroleum Regulatory Authority (Epra) chief general Daniel Kiptoo said the public authority is yet to pursue a choice on whether to practice its back-in choice given by the creation sharing understanding.
"The creation sharing agreement gives the public authority an option to move in and join the worker for hire bunch by getting a 20 percent stake in the task," said Mr Kiptoo.
"This choice is practiced once the field improvement plan is endorsed and the undertakings move from investigation stage to advancement stage," he said.
As indicated by the Epra chief, the public authority will settle on whether to actuate the provision once progressing survey of the field development plan (FDP) has been finished up, which will decide the destiny of the undertaking.
British oil firm Tullow Oil possesses 100% of the stake in blocks 10BA, 10BB and 13T in the South Lokichar Bowl in Turkana.
This is after its joint endeavour accomplices TotalEnergies and Africa Oil Partnership, who had 25% stakes each in the blocks, offloaded their stakes to Tullow. In any case, Mr Kiptoo said the choice can be practiced straightforwardly or through a vehicle like the National Oil Corporation of Kenya (Nock).
To underline the public authority's expectation to possibly repurchase a stake in the endeavour, Nock this week employed an expert that will, among different errands, empower Nock to move in the oil project for the benefit of the public authority.
Other oil blocks in the South Lokichar Bowl are Amosing, Twiga, Etuko, Ekales-1, Agete, Ewoi, Ekunyuk, Etom, Erut and Emekuya.
"The general terms of reference of the expert (incorporate) support Public Oil drive for back-in-privileges in Lokichar Bowl revelations. Give administration and backing to public upstream to completely be on-boarded for back in privileges for the public authority," said the organization.
Mr Kiptoo said the monetary thought of the back-in could assume a significant part on whether the green light is given, taking into account that the public authority will probably pay billions of shillings.
"Epra is presently surveying the FDP and this (back-in) is a choice that is yet to be made," he said.
Indeed, even as the audit of the FDP proceeds, Tullow has battled to track down all around promoted financial backers to collaborate with in the undertaking following the exit of its JV accomplices.
