Tullow Oil pares back to strongholds after trouble in Namibia

摘要

After several failed attempts, the British junior has trimmed its sails. 2019 looks set to be a decisive year for Tullow Oil, which pulled out of one of its two Namibian blocks after disappointing well results ( AEI 826) and has cut staff by nearly half since 2017. Given Chariot Oil & Gas’s unsuccessful venture on its Namibian offshore block near to the British junior’s, Tullow is now expected to focus its efforts on its Kenyan projects. The company holds five permits in Kenya’s onshore Lokichar basin, in the west of the country, and is looking for partners to come up with the $3 billion needed to start up production at its Amosing/Ngamia field by 2012/2022. This is a huge sum for the junior, whose revenue for the first half-year of 2018 stood at just under $1 billion. To fund the project, Tullow Oil may look to sell between 15% and 20% of its Kenyan permits 10BB and 13T. It may also be looking to find a co-investor before the final investment decision in 2019. The company has been following the latest bidding round in Ghana, where it generates most of its revenue ( AEI 808). Its income from Ghana is crucial, as the Ugandan government is claiming $300 million in capital gain tax for the 2017 sale of 21% of its 33% stake in its Ugandan blocks to partners Total and Cnooc ( AEI 821).