Water deal crucial to Kenyan pipeline

Tullow Oil is hoping to conclude a deal with Kenyan authorities that would see it take another step forward in finalising construction of an oil pipeline.

According to Reuters, Tullow hopes to conclude a deal with authorities in this year’s second quarter which will allow it to pump water to pressurise Kenya’s first oil wells at the onshore fields of Turkana.

Tullow Kenya Managing Director Martin Mbogo told the publication the deal was a necessity if it hoped to achieve a final investment decision (FID) on the project later this year.

 “(It’s) one of those things we absolutely need before we can get to FID,” he said.

Tullow is also looking to send out construction tenders in the near future for the 820 km pipeline it intends to run from the oil fields to the Indian Ocean.

Tullow hopes to acquire land for infrastructure around the US$2.9 billion project and the company believes the oil fields can produce up to 100,000 bbls from 2022.

The Kenyan Government has the option to buy up to 20 per cent of the oil fields and the pipeline.

For more information visit the Tullow Oil website.

If you have news you would like covered in Pipelines International, contact Assistant Editor Chloe Jenkins at cjenkins@gs-press.com.au

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