Page 9 - AfrOil Week 12 2022

AfrOil INVESTMENT AfrOil

However, the company has not made any deci- facility (CPF) to 130,000 barrels per day (bpd) of
sions yet, sources familiar with the process told oil and expanding the pipeline’s diameter from
the news agency. 18 inches to 20 inches to increase flow rates.
The South Lokichar discovery straddles Tullow said the changes have increased
blocks 10BB and 13T in Turkana county. Tullow the total gross capital expenditure for both
has a 50% stake in the blocks, which are esti- the upstream and midstream components of
mated to contain 560mn barrels of crude oil in the project to $3.4bn, while delivering a 30%
proven reserves. The remaining equity in the increase in resources and bringing the per-unit
project is split between its partners, Africa Oil cost down from $31 to $22 per barrel. The com-
Corp. (Canada) and TotalEnergies (France), pany is now targeting production of 120,000
each with 25%. bpd. ™
In 2021, the joint venture partners began
looking for a strategic investor to share the cost
of bringing the discovery on stream.
In a report on its financial results for the year
ended December 31, Tullow said that discus-
sions with interested parties are progressing
and the joint venture partners look forward to
securing a strategic investor for the project.
“The final development plan (FDP) is condi-
tional on a number of critical workstreams for
both the Government of Kenya and the JV Part-
ners, including, but not limited to, the successful
introduction of a new strategic partner,” said the
London-listed firm.
In line with licence extension requirements,
Tullow and its JV partners submitted the final
FDP to the government of Kenya in December
2021. “The JV is now working closely with the
Ministry of Petroleum and Mines to secure FDP
approval which needs to be ratified by the Ken-
yan Parliament,” Tullow said on March 9.
Key changes to the development concept of
the project incorporated production data from
an early oil pilot scheme (EOPS), optimising the
number of wells to be drilled and changing the
producer to injector ratio. The EOPS plan had
entailed moving crude by road from Lokichar
to Mombasa port for export.
Other changes involve adding the Eka-
les field into the first phase of production and
increasing the capacity of the central processing The South Lokichar find straddles Blocks 10BB and 13T (Image: Tullow Oil)

PERFORMANCE
Eco Atlantic revises CPR to cover all assets

offshore Guyana, Namibia, South Africa

NAMIBIA/SOUTH AFRICA UK-BASED Eco (Atlantic) Oil & Gas said on Guyana, Namibia and South Africa. It covers
March 21 that it has revised its competent per- both liquid and gaseous hydrocarbons and
son’s report (CPR) to reflect its recent acquisition divides the acreage into higher and lower-risk
of Azinam Group, which holds equity stakes in categories.
a number of blocks offshore South Africa and In a statement, Eco Atlantic said that the new
Namibia. CPR’s best estimate for the total reserves of the
The new CPR, which was drawn up by WSP Orinduik block, located offshore Guyana, was
USA, an independent third-party auditor based 4.537bn barrels of crude oil and liquids and
in Boulder, Colorado, includes Eco Atlantic’s 3.626 trillion cubic feet (102.7bn cubic metres)
entire portfolio, encompassing acreage offshore of gas.

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