23rd May 2023 10:07
(Alliance News) - Tullow Oil PLC on Tuesday said that two minority partners of its licences in Kenya intend to withdraw from their interests in the South Lokichar Basin.
Tullow Oil is an Africa and South America-focused oil and gas exploration and production company.
The unnamed partners told Tullow Kenya BV they will withdraw from Blocks 10BB, 13T and 10BA for "differing internal strategic reasons". As a result, Tullow's working interest in these blocks will increase from 50% to 100%.
Tullow told investors that owning the whole project created "more optionality" and flexibility in the ongoing process of finding strategic partners. However, the process of securing these partners was taking "longer than expected", the company acknowledged.
The prospective strategic partners have been informed, Tullow said. "They remain engaged and detailed farm-out discussions continue with a number of companies," it said.
Tullow said project progress has continues. The updated field development plan was submitted to the Kenyan regulator, Energy & Petroleum Regulatory Authority, in March and is now under review.
Tullow Oil shares were trading 1.2% higher at 25.20 pence each in London on Tuesday morning.
By Holly Beveridge, Alliance News reporter
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