{"id":1510,"date":"2014-07-28T16:20:39","date_gmt":"2014-07-28T13:20:39","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=1510"},"modified":"2015-09-04T09:46:27","modified_gmt":"2015-09-04T09:46:27","slug":"tullow-oil-africa-oil-signals-possible-farm-out-in-kenya","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-africa-oil-signals-possible-farm-out-in-kenya\/","title":{"rendered":"Tullow Oil, Africa Oil signals possible farm out in Kenya"},"content":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n

Tullow Oil and its partner Africa Oil may be farming out blocks 10BB and 13T in the Lokichar basin and where the companies have already discovered oil reserves in excess of 600 million barrels.<\/p>\n

According to Africa Oil CEO Keith Hill in an interview with Reuters<\/a> the plans that are not pegged currebtly on no timeline will occur similar to the situation in Uganda where the company farmed to Total and CNOOC.<\/p>\n

“We will likely bring on a partner to help develop Lokichar Basin reserves but no timetable has been set,” Hill told Reuters in an email interview.<\/p>\n

The British explorer according to experts is in fact in no financial position to develop the blocks for production all by itself.<\/p>\n

Early in May CitiBank warned that Tullow could be entering into dangerous levels of debt that had the levels to delay oil production in East Africa if a farm does not happen.<\/p>\n

\u201cA failure to farm-out its current high equity stakes in its future developments could see a delay in the development timetable for some of these projects,\u201d said Citi in a report titled Detailed Review of Tullow\u2019s Exploration and Production Portfolio.<\/p>\n

\u201cAssuming no farm-outs, we see net debt\/EBITDA peaking at 2.4-times in 2016 on our oil price deck (of $90 per barrel) and gearing (or net debt to equity ratio) peaking at 80 per cent in 2017,\u201d continued the report.<\/p>\n

Tullow Oil is likely however to get a financial injection from National oil Corporation of Kenya that has already said it will back-in<\/a> on the two blocks under the provisions of the PSC.<\/p>\n

\u201cUnder the PSC we have a clause that allows the government to acquire a stake in blocks inside the country should a discovery be made. National Oil on behalf of the government will therefore exercise this right although we are yet to decide on the equity to acquire,\u201d said National Oil managing director Sumayya Athmani.<\/p>\n

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n","protected":false},"excerpt":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’] Tullow Oil and its partner Africa Oil may be farming out blocks 10BB and 13T in the Lokichar basin and where the companies have already discovered oil reserves … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":14,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[70,259,266,466,1249,1252,1690,2571],"class_list":["post-1510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-africa-oil","tag-block-10bb","tag-block-13t","tag-citibank","tag-keith-hill","tag-kenya","tag-national-oil-corporation-of-kenya","tag-tullow-oil","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2013\/12\/tullow.jpg?fit=276%2C182&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-om","jetpack-related-posts":[{"id":1594,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenyas-block-10bb-13t-3d-seismic-on-course-to-be-complete-in-q4\/","url_meta":{"origin":1510,"position":0},"title":"Kenya\u2019s Block 10BB, 13T 3D seismic on course to be complete in Q4","author":"Samuel Kamau Mbote","date":"August 11, 2014","format":false,"excerpt":"The acquisition of a 550 square kilometer 3D seismic program in blocks 10BB and 13T is on course as scheduled to be complete in the fourth quarter of 2014 according to the latest operational update by Africa Oil. 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Following the approval exploration periods for block 10BB and 13T will expire in July 2017 and September 2017, respectively. This year the partners in both\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-10bb.jpg?fit=598%2C746&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-10bb.jpg?fit=598%2C746&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-10bb.jpg?fit=598%2C746&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4234,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-receives-kenyan-government-approval-of-maersk-oil-farm-in\/","url_meta":{"origin":1510,"position":5},"title":"Africa Oil Receives Kenyan Government Approval of Maersk Oil Farm In","author":"","date":"January 11, 2016","format":false,"excerpt":"Africa Oil Corp.\u00a0has reported that the previously announced farm-out with\u00a0Maersk Oli and Gas has received approval from the Government of Kenya. This gives a green light for completion of the farm-out of Blocks 10BB, 13T and 10BA.At completion of the Maersk farmout, the new respective interests in each of Africa\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/11\/Africa-Oil-East-Africa-acreage.png?fit=399%2C498&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=1510"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1510\/revisions"}],"predecessor-version":[{"id":3414,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/1510\/revisions\/3414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/14"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=1510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=1510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=1510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}