ERHC Energy Inc (ERHE)

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Total and Tullow Look to Offload Kenya Holdings
Monday, January 27, 2020

According to reports, Irish independent Tullow Oil and French major Total are looking to sell off their stakes in Kenya’s South Lokichar Basin oil fields. The commercial phase of the project was expected to begin later this year, leading to first oil in 2022.

Last year Tullow indicated it was looking to reduce its stake in the fields by 20%-50%, but since its disappointing results in Guyana and ongoing problems at its Ghana operations, the company’s share price has tumbled and it is now looking to offload the entire operation. Total on the other hand, is looking to sell up to half of it’s 25% holding.

According to Reuters sources, the companies have retained Natixis to run the joint sale process for Blocks 10 BA, 10 BB and 13T in the South Lokichar Basin.

Earlier this month, Tullow suspended the trucking of Turkana crude oil citing severe damages by adverse weather conditions that were experienced in Q4 2019. “The early oil pilot scheme (EOPS) remains on hold until all roads are repaired … Work at the sites continues, with Joint Venture Partners and the Government of Kenya to progress the development project,” read a company statement mid-January.