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Tullow Oil to make final investment decision in Kenya by 2020

NAIROBI, Kenya, Jun 28 – Oil exploration and development multinational firm, Tullow Oil, has stated its plan to fully invest in oil drilling in Kenya will be made by end of 2019.

In its half-year trading guidance, Tullow Oil says work has started on the Front End Engineering Design and Environmental and Social Impact Assessment for the upstream foundation stage.

The company’s Chief Executive, Paul McDade, says Tullow Oil has refreshed the exploration portfolio.

“We are accelerating production and cash flow growth across West Africa, we continue to make good progress towards sanctioning our developments in East Africa and are about to embark on a multi-year frontier drilling campaign targeting high-impact prospects in Africa and South America,” said McDade in a statement.

Tullow Oil says it is buoyed by the settlement of contentious issues in the Petroleum Bill that paved the way for the transfer of stored crude oil from Turkana to Mombasa which commenced on 3rd June 2018.

The first truck arrived at the Kenya Petroleum Refinery facility in Mombasa on 7th June where the oil will be stored for future export.

The trucks are transporting approximately 600 barrels of oil per day (bopd) and will steadily increase to 2,000 bopd once the Early Oil Production System is fully operational and production testing commences from the Amosing production facility in Lokichar, Turkana County.

“Extended injection and production testing continues, with water injection testing ongoing at Ngamia-11 and continued oil production from the Ngamia-8 well. The Ngamia-3 well also successfully started production in June 2018,” states the trading guidance.

Meanwhile, the company’s revenue from West Africa – Ghana, Equatorial Guinea, Gabon and Cote d’Ivoire – increased to $900 million for the first six months of 2018 compared to $800 million in 2017.

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US$ 300 million in free cash flow has enabled Tullow to further reduce its debt in the first half of the year and the Group expects net debt to be approximately $3.2 billion at 30 June 2018.

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