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TLW - Tullow Oil News Story

203.9p -3.3  -1.6%

Last Trade - 18/10/19

Sector
Energy
Size
Large Cap
Market Cap £2.87bn
Enterprise Value £6.28bn
Revenue £1.48bn
Position in Universe 234th / 1855

UPDATE 1-Kenya signs milestone crude processing deal with oil firms

Tue 25th June, 2019 2:47pm
(Adds details, background)
    NAIROBI, June 25 (Reuters) - The Kenyan government has
signed agreements with oil major Total  TOTF.PA , Tullow Oil
< TLW.L  and Africa Oil Corp  AOI.TO  to develop a 60,000-80,000
barrels per day crude processing facility for oil discovered in
the country's northwest.    
    The Petroleum and Mining Ministry said on Twitter on Tuesday
that the heads of term agreements were for discoveries in Blocks
10 BB and 13T in South Lokichar Basin and the partners were now
focusing on securing financing for an export crude oil pipeline.
    Tullow and Africa Oil first discovered crude oil in the
Lokichar basin in 2012, which Tullow Oil estimates contains an
estimated 560 million barrels in proven and probable reserves.
Tullow has said this would translate to 60,000 to 100,000
barrels per day of gross production.  urn:newsml:reuters.com:*:nL5N20E0YN
    In addition to the processing facility, a crude oil export
pipeline from Lokichar to Lamu on Kenya's coast was also part of
the deal.
    "The infrastructure installed for the Foundation Stage will
be utilised for the development of the remaining oil fields and
future oil discoveries in the region, allowing the incremental
development of these fields to be completed at a lower unit
cost," Tullow Kenya said in a statement.
    Tuesday's deal is a major milestone on the way to a final
investment decision on Kenya's first oil project, which Tullow
aims to reach by the end of the year. It expects first
full-scale oil production in 2022. urn:newsml:reuters.com:*:nL5N2081YH
    It has put the price tag for its Kenyan upstream facilities
at $1.8 billion and the pipeline at $1.1 billion.    
    In February, the government said the crude oil deposits
discovered so far in Kenya were insufficient to justify
construction of a refinery. 

 (Reporting by George Obulutsa, Duncan Miriri and Shadia
Nasralla in London; editing by Emelia Sithole-Matarise)
 ((george.obulutsa@thomsonreuters.com; Tel: +254 20 499 1234;
Reuters Messaging:
george.obulutsa.thomsonreuters.com@reuters.net))
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