FEED Contract for South Lokichar To Be Awarded by May

Tullow Oil has announced that the upstream baseline data collection for the environmental and social impact assessment (ESIA) has commenced and the front end engineering design (FEED) contract is expected to be awarded this month as the pre development phase for the South Lokichar fields proceeds. The pipeline ESIA work is also under way, and following the award of the FEED contract, this work is due to commence this month with commercial discussions with potential pipeline contractors currently ongoing.

Meanwhile work continues in the field at both Amosing and Ngamia where the planned extended injection and production testing commenced on schedule in the first quarter. A comprehensive set of results from this programme is expected in the third quarter of 2018.

Following the start of injection and production testing, oil produced is initially being stored until all necessary consents and approvals are granted for the transfer of crude oil to Mombasa by road. Discussions between local and national Government are on-going with expectations of being able commence the trucking of oil in the coming months.

The company expects to reach the final investment decision in 2019

Meanwhile in Uganda the Joint Venture Partners comprising of Tullow Oil, Total and CnooC continues to work towards reaching FID for the development project in the second half of 2018 with operational activity continuing as planned, and FEED and ESIAs for both the upstream and pipeline progressing in line with the FID schedule.

Tullow Oil reports that discussions on the pipeline project continue amongst Joint Venture Partners and with both the Ugandan and Tanzanian Governments regarding the key commercial and transportation agreements. Tullow adds that it is fully prepared for a non-operated presence only.