Page 17 - AfrOil Week 37

AfrOil PROJECTS & COMPANIES AfrOil

“The agreement gives Trafigura access to the storage capacity. It also intends to increase the
existing terminal for storage of refined petro- port’s draft to enable larger vessels to be received.
leum products in order to supply the local This will allow traders to import refined prod-
market in a strategically important region,” Tra- ucts more economically, and increase their
figura’s head of energy trading in Africa, James access to re-export markets.
Josling, said in a statement. “We are working Somaliland’s government is looking to trans-
alongside the government to reduce sulphur form Berbera into a strategic hub, to handle
limits in the local fuel specifications, to give the regional demand for fuels that is growing each
opportunity for Somaliland to align product year.
specifications with regional market standards “We’re delighted to be working with a leading
such as Ethiopia and Djibouti, which will pro- independent, international company like Tra-
mote cross-border trade while improving air figura to improve the quality and reliability of
quality in line with Trafigura’s wider ESG agenda refined petroleum product supply into the coun-
and commitment to Africa.” try,” Somaliland’s Minister of trade, Mohamoud
The trader plans to import jet fuel and LPG Hassan Saad, said. “By working with Trafig-
into Somaliland in the future to serve local and ura there will be interested transparency, high
regional customers. It will also upgrade the Ber- standards, and increased competitiveness across
bera oil terminal, improving and expanding its the supply chain.” ™

Tullow suspends Kenyan farm-down plan

after government OKs licence extension

KENYA TULLOW Oil (UK/Ireland) has suspended by the government since the company declared
plans to unload its assets in Kenya after securing force majeure on the South Lokichar project ear-
an extension of its exploration licence for Blocks lier this year. The Daily Nation quoted Charles
10BB and 13T in the South Lokichar Basin. Wanguhu, the co-ordinator of Kenya Civil Soci-
According to a statement from Africa Oil ety Platform on Oil and Gas (KCSPOG), as say-
Corp. (Canada), Tullow’s partner in the South ing that Nairobi’s only gain had been a partial
Lokichar project, Kenya’s government has given one – namely, Tullow’s pledge to suspend but not
the company permission to extend its explora- halt the planned sale of its Kenyan assets.
tion by up to 15 months. The licence had been “Overall, the force majeure now appears to
due to expire on September 30, 2020, but Tullow have been used as a strong-arm tactic by the
may now extend it until December 31, 2020. It joint venture partners to gain better terms,”
also has the option to push the deadline back by Wanguhu said. “Kenya appears to have stuttered
another year, until December 31, 2021, on the at the first hurdle and given up incentives to the
condition of having an agreed budget and work company while garnering very little in return.
programme in place. In illustration, one would have expected at least
Africa Oil Corp. said that the partners an expedited final investment decision [FID].”
intended to use the extra time to draw up and
submit a new version of their field develop-
ment plan (FDP). They must complete the FDP
before making a final investment decision (FID)
on the project, and are already running behind
schedule.
Under the existing version of the FDP, Tullow
is supposed to launch the development phase
of the project by bringing the Amosing, Nga-
mia and Twiga oilfields on stream. It will also
construct a 60,000-80,000 barrel per day (bpd)
central processing facility (CPF) and an 892-
km export pipeline along a route from Hoima
to Lamu. In the second phase of work, it will
launch production at other oilfields within its
licence areas and use the CPF and pipeline to
handle the additional volumes.
Some observers in Kenya described the
extension of the exploration licence as just one of
the concessions that have been made to Tullow Tullow’s blocks are in the South Lokichar Basin (Image: Tullow Oil)

Week 37 16•September•2020 www. NEWSBASE .com P17