Page 13 - AfrOil Week 34

AfrOil INVESTMENT AfrOil

In the last year alone, it signed farm-in deals upstream focus, pursued in each case alongside
for three blocks in Mexico’s offshore Campeche a global major.
Basin and two blocks offshore Cote d’Ivoire, According to Wood Mackenzie, QP’s expan-
as well as exploration deals in several African sion is “being driven by corporate strategy”.
countries. Analyst Lynn Morris-Akinyemi was quoted
Having absorbed former overseas invest- by Petroleum Economist as saying: “It started
ment arm Qatar Petroleum International (QPI) this latest internationalisation push in mid-
in 2015, the parent company has confirmed 2016. However, the tensions in the Gulf have
assertions made at the time of undiminished possibly served to strengthen the company’s
enthusiasm for expansion abroad – with a fresh resolve to push ahead. ™

Kenya now conducting forensic

audit of Tullow’s expenditures

KENYA KENYA’S government has launched a forensic
audit of Tullow Oil (UK/Ireland), in line with
requests from Turkana county officials seeking
more information about the company’s activities
in the South Lokichar Basin.
John Munyes, the cabinet secretary of the
Ministry for Petroleum and Mining, confirmed
on August 24 that the audit was underway. The
process is designed to review all of Tullow’s
expenditures since the beginning of exploration
activities in Turkana County, he stated.
“We have kicked off a forensic audit of the
project so that we [can] determine how much
Tullow Oil has legally spent,” Munyes was
quoted as saying by the Nation. “The audit is
ongoing, and by September we want to ensure
that all challenges that have been affecting the
project are resolved.”
He did not comment on government audi-
tors’ findings to date, but he did say that Kenyan
authorities were keen on the development of the Tullow has been targeting fields in the South Lokichar Basin (Image: Tullow Oil)
South Lokichar Basin’s reserves. “We all know
that we have crude oil that is only waiting to be Kenya for its effort to collect $2.04bn in com-
produced,” he said. pensation for expenses related to exploration
Josphat Nanok, the governor of Turkana, and work in the South Lokichar Basin over a period
other local officials have complained that Kenya’s of six years. Members of the parliament’s energy
government has not disclosed all relevant details committee noted earlier this year that an audit
on Tullow’s drilling operations in the area. “We conducted by Swale House Partners at the Ken-
face the challenge of accessing critical informa- yan government’s request had put that figure at
tion shared by the government,” Nanok said at a approximately $1.6bn.
meeting with county officials in Lodwar in late Additionally, the Ministry for Petroleum and
July. “The Turkana County Grievances Manage- Mining has objected to Tullow’s declaration of
ment Committee has been left in the dark.” force majeure. The company has explained this
Other officials at the meeting, including move by pointing to the disruptive effects of
Deputy Governor Peter Lotethiro and county flooding, transportation problems and the coro-
lawmakers, agreed and called for an audit of navirus (COVID-19) pandemic on its Kenyan
Tullow’s activities. They advised Nanok to press projects, but ministry officials speculated in May
Nairobi for more information and suggested that the company was trying to derail its opera-
that the governor direct his request to Munyes. tions in the South Lokichar Basin and speed up
Tullow announced its plans to exit East its exit from East Africa.
Africa earlier this year and has already arranged Tullow has been working with Total and
to sell its assets in Kenya, Uganda and Tanzania Africa Oil (Canada) to develop Blocks 10BA,
to Total (France). It has yet to complete the with- 10BB and 13T in Kenya. Equity in the project
drawal process, however. was originally split 50% to Tullow, 25% to Total
Tullow has also come under criticism in and 25% to Africa Oil.™

Week 34 26•August•2020 www. NEWSBASE .com P13