After weeks of speculation of an Indian company entering the Kenyan upstream sector scene accompanied by media reports of an Indian oil refiner eyeing the Lokichar basin a meeting between Kenya’s Minister for Petroleum and Mining Dr. Ambassador Monica Juma Executive Director Indian Oil Corporation Hridesh Baindail and Executive Director ONGC Videsh Limited (OVL) Sanjeev Tokhi could offer more information.
The meeting was also attended by H.E. Dr. Virandar Paul, Indian High Commissioner to Kenya, Rahul Dhir -CEO Tullow Oil PLC, Mr. Madhan Srinivasan- MD Tullow Kenya,Mr. Khaled Kouki-VP Total energies,Mr. Tim Thomas-COO Africa Oil Corporation (Canada), Andrew Kamau the Principal Secretary MOPM and Stephen Ikua, DG Lappset Corridor..
In its latest update, the July Trading and Operations Update Tullow Oil the Joint Venture Partners continue to make good progress with the farm-down to a strategic partner and the approval of the Field Development Plan (FDP) for Project Oil Kenya.
“A successful farm-out is viewed by the Company as a critical step towards the FID for Project Oil Kenya being achieved over the course of next year,” Africa Oil told investors in its financial and operating results for the three months ended March 31, 2022 released in May.
In March Bloomberg reported that the Indian Oil Corp. was looking at potentially investing in Tullow Oil Plc’s $3.4 billion Kenyan project, citing people familiar with the information.
Project Oil Kenya could also offer an opportunity for the Indian Giant OVL to have a participating interest in East Africa after leaving Sudan due to non-payment for oil lifted from its fields to the company and its partners totaling $430.69 million.
Offshore in Mozambique ONGC holds net 16% Participating Interest (PI) in the project. 10% PI is held through ONGC Videsh Rovuma Limited (OVRL), wholly owned Indian Subsidiary of ONGC Videsh, and 6% PI is held through 60% shareholding in Beas Rovuma Energy Mozambique Limited (BREML) whereas remaining 40% shares in BREML is held by OIL.