Why Tullow, Total are shipping out of Kenya’s oil project dream

Workers walk past storage tanks at Tullow Oil's Ngamia 8 drilling site in Lokichar, Turkana County. [File, Reuters]

Tullow Oil is in the next six months set to sell the entire stake in the Lokichar oil blocks a move that could present major challenges for the country. Kenya expected to start the commercial phase of the project later this year, leading to first oil in 2022.

Reports indicate the firm, which has been steering development of the Project Oil Kenya as the operator of the blocks, could be selling its entire stake in the blocks. This may throw a major curve ball for the country’s ambition to commercially produce oil.