By MKT Reporter
Independent energy company Tullow has confirmed its continued commitment to Project Oil Kenya in Turkana County during a Senate Committee on Energy hearing.
Speaking at the committee session, Tullow Kenya BV Managing Director Madhan Srinivasan confirmed that Tullow is working closely with stakeholders, including the Government of Kenya, the Energy and Petroleum Regulatory Authority (EPRA) and the Host Community in Turkana County. He also confirmed that Tullow now has a strong balance sheet and the technical capability to develop the Turkana oil resources.
At the session chaired by Senate Energy Committee Chairman Senator Wamatinga Wahome, Mr Srinivasan assured that Tullow is building a better future through responsible oil and gas development. Other Senate Committee members included Vice Chairperson William Kisang, Senators Mohamed Abass, James Lomenen, Oginga Oburu and Edwin Sifuna.
Srinivasan commented: “Tullow submitted a Field Development Plan (FDP) in March 2023 and we are working on final revisions following feedback from EPRA. Upon reaching final approval, we can commence critical workstreams to enable the project to reach a final investment decision (FID).”
Accompanied by the firm’s Country Manager, Mr Franklin Juma, and Commercial Manager, Mr David Kombe, Tullow, Mr Srinivasan noted that the key milestone to advancing Project Oil Kenya and unlocking value rests on finding a strategic partner to apportion the capital exposure and risk due to the scale of the project investment. Once a strategic partnership is secured, the next challenge is to secure project financing.
He said unlocking value from Kenya’s discoveries remains a key catalyst for Tullow and the Company is confident the development of the material resource base can reshape Kenya’s energy landscape, bringing multiple financial and broader social benefits to the nation.
“Tullow is building a unique Pan-African operator platform and features a highly experienced management team, which is committed to Africa,” Srinivasan said. He added, “Tullow has a robust financial position and has generated over $1 billion (KSh129 billion) of free cash flow between 2020-23, with a further $200-300 million expected in 2024.”
Further outlining the firm’s delivery capability, Mr Srinivasan said Tullow has a track record of consistent top-tier operating capability and performance. He presented the firm’s experience in Ghana, saying that over the past four years, the new management team in Tullow has achieved a major operational turnaround, resulting in higher operating and capital efficiency, and reduced operating and drilling costs.
“Tullow has operated the Kenyan assets and spent over $2 billion (KSh260 billion) since the first discovery in 2012, which returned a discovery of 585 million barrels of oil. Tullow continues to be committed to bringing broader social benefits from its operations, such as community water boreholes, which continue to benefit around 20,000 households per year,” he told the committee.
Tullow Kenya BV is an affiliate of Tullow Oil Plc, an independent energy company, with total annual revenues of more than $1.634 billion (KSh 210.78 billion) in 2023. For the first half of 2024, Tullow recorded revenues of $759 million (KSh 97.91 billion), a gross profit of $460 Million (KSh 59.3 billion), and a profit after tax of $196 Million (KSh 25.28 billion).
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