Kenya’s Crude Oil Recoverable Resources Up to 750 million barrels in New Assessment

Tullow Oil has said its initial assessment estimate Kenya crude oil recoverable resources have jumped 25 percent to 750 million barrels following the recently concluded exploration and appraisal drilling.

This is up from 600 million barrels earlier reported in an independent assessment completed by Gaffney, Cline & Associates which increased the total 2C (best) gross contingent resources by 67% to 616 million barrels of oil and total 3C (high) gross contingent resources increased 52% to 1.29 billion barrels.

Tullow Oil has also hinted that it is re-starting the exploration campaign in the South Lokichar basin saying it was reviewing options so as to de-risk the overall upside potential of 1 billion barrels.

The explorer had earlier said it would consider further exploration activities following the successful basin opening well Etom-2 result in the South Lokichar Basin in December 2015.

This said the group has continued to reduce capital expenditures to just $1.1 billion with further reductions expected later in the year.

The new assessment is welcome news as Kenya plans on building an export pipeline alone after plans to share a pipeline with Uganda fell through.

On exports Tullow has further hinted on the earlier reported road and rail transport in Kenya saying it was evaluating the use of existing infrastructure.

This it says would provide valuable reservoir data ahead of a full field development with an export pipeline.

“Tullow will now work with the Government of Kenya and our partners on a range of options for the independent development of these resources including early production using existing infrastructure which would provide valuable reservoir data ahead of a full field development with an export pipeline,” the company said in a statement.

Author: OilNews

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