Canadian exploration company Africa Oil has announced that it earned a total of Sh. 426.75 million from the sale if a consignment of Turkana oil.
The company said that the earnings were derived from the sale of 174,627 barrels of crude oil that were sold between July and September this year.
“The joint venture sold 174,627 bbls from its oil inventory in quarter three of 2022 with a net receipt to the company of $3.5 million (Sh. 426 million),” said Africa Oil in regulatory filings.
Africa Oil and Total own a 25 per cent stake each. Tullow owns the remainder of 50 per cent interest in blocks 10BB and 13T in the South Lokichar basin in Turkana County.
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Tullow discovered about one billion barrels of crude in 2012 in the area.
Kenya’s south Lokichar fields in blocks 10BB and 13T are projected to produce 120,000 barrels of oil per day, with expected gross oil recovery of 585 million barrels over the full life of the field, according to Tullow.
The company estimated the cost of production from the wells at $22 (Sh. 2,614) a barrel.
The oil project has been facing headwinds and questions over its viability. In July 2022, Tullow Oil had announced that it was seeking for a strategic partner to kick-start and accelerate the project
“A confidential process to secure a strategic partner for the material development project in Kenya continues and Tullow is confident that it will make substantial progress in the second half of the year,” Tullow said.
