Canadian exploration firm Africa Oil has ended its operations in Kenya, setting eyes on other markets.
In an official statement on May 23, Africa Oil’s President Keith Hill noted that the company had changed its strategy, focusing on production and high exploration opportunities in other parts of Africa.
In addition, Hill mentioned that the company will explore opportunities in the Venus discovery in Offshore Namibia which has recoverable oil.
Hill thanked Kenyan authorities for the cooperation during its operations that culminated in the discovery of oil fields in Kenya’s South Lokichar Basin.
“Africa Oil is proud to have played a central role in discovering the oil fields in Kenya’s South Lokichar Basin,” the statement read in part.
Tullow in Full Control after Africa Oil exit
Africa Oil made the announcement on the back of a similar move by Total Energies which was also a minority partner in the South Lokichar Basin.
On May 23, British Oil firm Tullow Oil announced the receipt of a communique from both Total and Africa Oil notifying relevant stakeholders of the decision to exit.
Thus, Tullow, which previously controlled 50 percent interest in the oil blocks will henceforth assume 100 percent control.
In a statement seen by Emerging Brands Africa, Tullow welcomed the development and affirmed its commitment to the project’s implementation.
Tullow Kenya BV Managing Director Madhan Srinivasan noted that assuming ownership would help to streamline operations.
“The Board considers that owning 100% of the project creates more optionality, and gives Tullow more flexibility in the ongoing process to secure strategic partners.
It creates a simpler Joint Venture Partnership and streamlines project delivery,” Tullow Kenya MD stated.
Consequently, the government of Kenya is set to approve the changes to give green light to Tullow to carry on with its exploration activities.
Tullow has already submitted a Field Development Plan to Kenya detailing plans to drill oil in the Turkana-based basin.
Subject to parliament’s ratification, Tullow is expected to commence commercial drilling of crude oil.