Tullow Kenya FID delayed again with Uganda stuck on tax

摘要

Tullow Oil has put back a final investment decision(FID)on its Kenya pipeline project until the second half of next year and confirmed that the end of 2019 decision date for the Uganda pipeline may be missed.In Kenya the head of terms was signed earlier this year with the government to export crude from the South Lokichar fields.The project will produce around 70,000 b/d and take in 210m bbl of the reserves.However,an FID has been continually delayed and now put back to late 2020.Tullow is looking to control the project but reduce its stake from 50%,particularly as it now needs new capital to fund exploration and development in Guyana.Chief executive Paul McDade said:”After discussing the remaining milestones with the government,we have a new FID date in the second half of 2020,and we're now feeling more confident that this timeline is realistic and achievable.It seems like a high equity to have in that project.So that will be some-thing we'll do ahead of FID.”