Tullow Oil has announced plans to invest an additional Ksh. 340 billion in its crude oil development project in Kenya, as a result of additional wells that are set to be drilled alongside a larger diameter crude oil export pipeline.

The company says the additional investment will be used to develop its upstream activities as well as the pipeline between Turkana and Lamu.

“The increase in capex from the previous design is due to a bigger facility processing capacity, additional wells to be drilled and larger diameter crude oil export pipeline, which delivers 30% increase in resources whilst lowering the unit cost to 22 dollars per barrel from the previously 31 dollars per barrel,” an excerpt from Tullow’s statement read.

The firm further says the revised development concept allows greater flexibility in adding oil fields into production without significant modifications to the project’s infrastructure.

The firm has also announced that the 825-kilometre pipeline that will transport the crude oil from Turkana to the port of Lamu will be heated and buried to avoid any disruption in the long-term.

Additionally, Tullow Oil plans to carry out more exploration drilling in the Blocks 10BB and 13T licences as well as exploring potential in Blocks 10BA and 12B.

The company entered Kenya a decade ago after signing agreements with Africa Oil and Centric Energy to gain a 50% operated interest in five onshore licences 10BA, 10BB, 10A, 12A and 13T. In 2012, Tullow farmed into onshore Block 12B with 50% and increased its interest in Block 12A to 65%. Since then our interest in Block 10A was relinquished in December 2013.

Tullow Oil currently has a 50% operated interest in Blocks 10BA, 10BB, 13T and 100% in Block 12B. In June 2019 Tullow exited non operated Block 12A.