Tullow Oil Secures Critical Extension for Kenya Oilfield Development
Tullow Oil Plc and Kenya’s Gulf Energy Ltd. have been granted a crucial six-month extension until December to submit their development plan for oil fields in Kenya, providing breathing room for the completion of a significant asset sale.
The extension comes as Tullow works to finalize a $120 million deal to sell the oil deposits to the Nairobi-based trading firm, marking the end of more than a decade of struggles to bring the fields on stream. The sale has been welcomed by investors eager to see Tullow’s debt burden reduced, though it remains contingent on the successful submission of a comprehensive development plan.
Daniel Kiptoo, director-general of Kenya’s Energy and Petroleum Regulatory Authority, confirmed the extension by phone, noting that while the regulator hopes for progress sooner, Gulf Energy is expected to modify several aspects of the plan before filing.
Tullow announced on June 30 that the sale agreement is expected to be signed “in the near term.” The London-based oil company is also divesting assets in Gabon as part of efforts to shore up its financial position.
Source: worldoil.com
