Tullow to commence drilling in Northern Turkana basin

Tullow, UK-based oil and gas exploration and production group, has announced that it will, in the next few weeks, commence drilling for oil in the North Turkana Basin. A result from this basin-testing well is likely to be made public in early 2015.

In a statement, the firm said that in the coming year, in addition to significant appraisal and testing activity in the South Lokichar Basin, it expects to drill a further 5 basin-testing exploration wells across its acreage in Kenya and neighbouring countries of Uganda and Ethiopia.

The firm has announced that it is presently moving its rig to the Engomo-1 wildcat well location in the North Turkana Basin. During the year, Tullow has continued with significant exploration and appraisal activity in Kenya. For instance, the South Lokichar basin was extended to the North and the South with a discovery at Etom-1 and substantial oil shows seen in Ekosowan-1.

Offshore exploration

A number of successful appraisal wells and flow tests have also been carried out across the basin said to have a resource base of close to 600 million barrels. Tullow has also embarked on a series of basin opening wildcat wells in Kenya as it seeks to replicate the success in the South Lokichar and Lake Albert Rift Basins. The first of these, Kodos-1, in the Kerio Basin encountered hydrocarbon shows close to the basin bounding fault.

The current ambition of both the Kenya and Uganda Government as the joint venture partnerships is to develop the Lokichar and Lake Albert resources including putting up an export pipeline in early 2016. But while Tullow’s oil and gas exploration activities in East Africa have been successful, the firm has announced that it will cut on offshore exploration spend from next year. “Exploration will continue to be a key part of Tullow’s future growth strategy. However, given the current expectations for the oil price, reduced commercial success from offshore drilling and the lack of asset transactions, returns from drilling complex, deep water wells are currently less attractive,” said statement from Tullow.

In response, Tullow will now focus the majority of its exploration and appraisal expenditure on its operated onshore East Africa portfolio where significant value can be created by adding further resources and appraising existing discoveries to progress development in both Uganda and Kenya.

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