Tullow Oil Plc. has completed exploration and appraisal drilling at the South Lokichar Basin and is now shifting its focus to Early Oil Pilot Scheme(EOPS) and development of the discovered resources. This is according to an operational update released by the British company for the period between July and November 2017.
Activity will now move to focus on collecting further dynamic data from the fields. As part of EOPS extended production, water injection testing and a water flood pilot test utilising the Ngamia-11 well are planned for the first half of 2018. Produced oil will initially be stored, until all work is completed and necessary consents and approvals granted for the transfer of crude oil to Mombasa by road.
Commenting on the update, Paul Mcdade,CEO Tullow Oil Plc said “I am pleased to report that Tullow continues to make good operational and financial progress. The business is generating free cash flow which is enabling us to continue to reduce our debt. In East Africa, both our projects are making steady progress towards Final Investment Decisions with our Kenyan business beginning the important shift from exploration and appraisal to development.
Adding that the market conditions improving, Tullow is well placed to benefit both from targeted investment in our diverse, low-cost portfolio and the opportunities that this point in the cycle presents.”
Tullow is now reviewing all the data from the South Lokichar basin and in the first quarter of 2018 intends to give its assessment of Contingent Resources and plans for developing the basin.
A Joint Development Agreement (JDA), setting out a structure for the Government of Kenya and the Kenya Joint Venture Partners to progress the development of the export pipeline, was signed on 25 October 2017. The JDA allows important studies to commence such as FEED, Environmental and Social Impact Assessments (ESIA), as well as studies on pipeline financing and ownership. Upstream FEED and ESIAs are expected to commence in the first quarter of 2018.
For more information on the operational update, click http://www.tullowoil.com/