Tullow PLC Strikes More Oil Deposits in Turkana County
Barely a month after the nurses went on strike and the teachers followed suit, another form of strike came to life and this time round it bore good news in the form of an oil strike. Tullow oil, the British multinational firm, has since made big developments on the oil exploration process.
Drilling that begun in May this year bore fruitful results after the multinational struck oil in Etuko-1 oil well. This brought the total volume to 5,000 up from 2,351 barrels of oil per day (bopd) discovered earlier in February this year. However, the firm states that the amount could go up if better equipment is used in the production process and bring the volume up to 5,200 bopd. Who knows what the future holds once the tests are completed? In addition, the firm announced that it plans to drill additional oil wells in the County.
The latest test data has seen oil production becoming commercially viable in the near future after the team just concluded its fourth test on Ngamia-1 oil well and managed a flow rate of 2812 bopd up from 281 barrels in the first test. Oil exploration tests are still on-going and the team is currently working on the fifth and final tests.
However, to manage expectations, the firm said the test results in isolation so far are not commercially viable given that the well is located in a landlocked area and would need more wells to make it viable. “This is a process and as above will take a number of wells and further discoveries. The Basin is landlocked and any discovery needs to be large enough to justify the cost to bring the oil to market. We are a long way from declaring that anything is commercial,” Ms Anne Kabugi, Tullow Kenya spokesperson said. On a positive note, it adds hope of Kenya becoming an oil producer.
Tullow operates the Ngamia-1 well with 50 percent interest while Africa Oil which holds the remaining 50 percent, has a non-operated interest.
According to the Guardian magazine, after the announcement that the firm had struck oil, Tullow Oil gained 3% amid the market rout in the stock exchange, after a positive update on its developments, notably in Kenya.” Tullow is expected to release its half year results in July.
The firm estimates that Kenya’s oil field could yield 10 billion barrels, enough to supply Kenya for three centuries at its current consumption of 80,000 bpd. These oil finds will put Kenya at the centre of Africa’s oil boom. This will make Kenya and its east Africa neighbours, as well as the Horn of the continent become a hot spot for oil and gas exploration as there have been new finds in the past in Uganda, Tanzania and Mozambique.
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