{"id":4242,"date":"2016-01-13T07:57:58","date_gmt":"2016-01-13T07:57:58","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4242"},"modified":"2017-01-26T10:12:23","modified_gmt":"2017-01-26T10:12:23","slug":"tullow-oil-slashes-east-africa-exploration-budget-focuses-on-pre-development-stage","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-slashes-east-africa-exploration-budget-focuses-on-pre-development-stage\/","title":{"rendered":"Tullow Oil Slashes East Africa Exploration Budget Focuses on Pre-Development Stage"},"content":{"rendered":"

Tullow Oil has slashed its exploration and appraisal budget by 50 percent compared to 2015<\/a> to just $100 million as the company allocated $150 million to pre-development expenditure.<\/p>\n

The reduction is an overall cut in the group\u2019s capital expenditure associated with operating activities which has reduced from $1.7 billion in 2015 to $1.1 billion in 2016.<\/p>\n

The reduction is also as a result of the near end of the drilling campaign with one well (Cheptuket) currently in drilling in the undrilled Kerio Valley Basin after which the last rig the PR Marriott Rig-46 will demobilise, marking the end of the current drilling campaign.<\/p>\n

Tullow says it is now making development plans in Kenya where the recent successful Etom-2 <\/a>appraisal well in the north South Lokichar basin supports an upside potential of over one billion barrels. Plans for further exploration drilling will be evaluated during the first half of 2016.<\/p>\n

The company has already submitted the draft Field Development Plan to the Government of Kenya in December which will inform discussions as it progresses towards potential final investment decision (FID) of both the Kenya and Uganda upstream development projects in 2017.<\/p>\n

\u201cIn East Africa, steady progress has been made towards a potential development sanction in 2017. Our appraisal programme in Kenya has proved up commercial resources with further significant upside identified,\u201d says CEO Aidan Heavey.<\/p>\n

Meanwhile the explorer has reported it expects to deliver revenue of $1.6 billion, gross profit of 600 million and pre-tax operating cash flow of $1.0 billion in 2015 largely due to the current low oil price and a number of accounting charges incurred in the 2015 including: a post-tax exploration write-off of $0.4 billion, a post-tax impairment charge of $0.3 billion and an onerous rig contract charge of $0.2 billion.<\/p>\n

The Group expects to write-off of prior year expenditure in the Netherlands, Gabon, Ethiopia, Greenland and Madagascar as a result of licence relinquishments, and a review of future work programmes in the context of current oil and gas prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tullow Oil has slashed its exploration and appraisal budget by 50 percent compared to 2015 to just $100 million as the company allocated $150 million to pre-development expenditure. The reduction … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":4243,"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":true,"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":[171,3357,3916,671,3845,837,3159,1252,1299,2068,2378,2571],"class_list":["post-4242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-appraisal","tag-cheptuket","tag-development-phase","tag-east-africa","tag-etom-2","tag-exploration","tag-field-development-plan","tag-kenya","tag-kerio-valley-basin","tag-pr-marriott-rig-46","tag-south-lokichar-basin","tag-tullow-oil","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/01\/Tullow-Oil.jpg?fit=699%2C466&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-16q","jetpack-related-posts":[{"id":4272,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cheptuket-1-well-in-kenyas-block-12a-on-course-to-complete-in-february\/","url_meta":{"origin":4242,"position":0},"title":"Cheptuket-1 Well in Kenya\u2019s Block 12A on course to complete in February","author":"","date":"January 20, 2016","format":false,"excerpt":"Block 12A basin opener Cheptuket well is still on its drilling schedule and is set to complete in February according to block operator Tullow Oil in its last update. The well that commenced drilling on 28th December 2014 by the PR Marriott Rig-46 is expected to test a basin bounding\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\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4498,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-expresses-optimism-despite-disappointment-at-cheptuket\/","url_meta":{"origin":4242,"position":1},"title":"Tullow Oil Expresses Optimism Despite Disappointment at Cheptuket","author":"","date":"March 16, 2016","format":false,"excerpt":"Tullow Oil has said despite the Cheptuket well discovering oil it was pleasing that the company established a petroleum system in the unexplored Kerio basin the first by the company outside the South Lokichar basin. According to Tullow\u2019s CEO Aidan Heavey in the company update the exploration company identified 700\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\/2016\/03\/Cheptuket-1-well.jpg?fit=699%2C466&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Cheptuket-1-well.jpg?fit=699%2C466&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Cheptuket-1-well.jpg?fit=699%2C466&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4468,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-hits-dry-well-in-cheptuket-well-in-block-12a-source\/","url_meta":{"origin":4242,"position":2},"title":"Tullow Oil Hits Dry Well in Cheptuket Well in Block 12A \u2013 Source","author":"","date":"March 11, 2016","format":false,"excerpt":"Three months after the drilling of the wildcat well in block 12A commenced OilNews Kenya has learnt from a source who chose to be anonymous that the well has since been completed with no significant hydrocarbon shows. The well which spud on December 28th 2015 by the PR Marriott Rig-46\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\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/07\/Mariott-Rig-with-watermark.jpg?fit=900%2C1200&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5737,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-exits-kenyas-block-12a\/","url_meta":{"origin":4242,"position":3},"title":"Africa Oil Exits Kenya\u2019s Block 12A","author":"","date":"March 7, 2017","format":false,"excerpt":"Africa Oil has withdrawn from Block 12A according to its fourth quarter financial and full year financial and operating results and written off $2.0 million in intangible exploration assets relating to the block. The Block which is operated by Tullow Oil was the focus in Q1 2016 during the drilling\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\/Block-12A.png?fit=447%2C346&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3185,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-africa-oil-commence-drilling-block-12a-basin-opener-october\/","url_meta":{"origin":4242,"position":4},"title":"Tullow Oil, Africa Oil to Commence Drilling Block 12A Basin Opener in October","author":"","date":"July 29, 2015","format":false,"excerpt":"Block 12A joint venture partners Tullow Oil and Africa Oil have announced they will spud the Cheptuket exploration well in October to test a basin bounding structural closure in the Kerio Valley Basin in a similar structural setting to the successful Ngamia and Amosing discoveries. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\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\/01\/block-12a.jpg?fit=355%2C315&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1942,"url":"https:\/\/www.oilnewskenya.com\/index.php\/mixed-luck-for-tullow-oil-africa-oil-in-northern-kenya\/","url_meta":{"origin":4242,"position":5},"title":"Mixed luck for Tullow Oil, Africa Oil in Northern Kenya","author":"Samuel Kamau Mbote","date":"October 23, 2014","format":false,"excerpt":"Tullow Oil has reported more oil finds as well as a number of disappointments in its latest Kenya exploration and appraisal update that included the first wildcat exploration well in the Kerio basin. In the first well drilled in the Kerio Basin, northeast of the successful South Lokichar Basin, Kodos-1\u2026","rel":"","context":"In "New Discoveries"","block_context":{"text":"New Discoveries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/new-discoveries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/north-turkana-basin.jpg?fit=750%2C944&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/north-turkana-basin.jpg?fit=750%2C944&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/north-turkana-basin.jpg?fit=750%2C944&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/north-turkana-basin.jpg?fit=750%2C944&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4242","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\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4242"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4242\/revisions"}],"predecessor-version":[{"id":4245,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4242\/revisions\/4245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/4243"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}