Tullow writes off Kes18.8Bn Turkana oil Project

• Tullow writes off 18.8 billion Turkana oil project

Tullow Oil has decided to write off Ksh18.8 billion from its Kenyan assets, pointing to ongoing government delays, uncertainty among investors, and infrastructure issues with the Turkana oil project.

In its most recent financial report, the British oil exploration company explained that the impairment is due to the stalled progress in developing the Lokichar oil fields.

This project, which was once viewed as a game-changer for Kenya’s oil industry, has encountered numerous obstacles, including bureaucratic holdups and challenges in attracting investment.

“Tullow has recorded an impairment of about $125 million (Ksh18.8 billion) on its Kenyan assets, given the lack of real progress on the project,” the company noted in its report.

Tullow has been on the lookout for strategic investors to help fund the project, but so far, those efforts haven’t yielded any results.

The delays in government approvals and the uncertainties surrounding the construction of a crude oil export pipeline have made the company’s plans even more complicated.

Despite this financial setback, Tullow insists it is still in talks with the Kenyan government and potential partners.

As a result, analysts see this move as a sign of waning confidence in the feasibility of Kenya’s oil aspirations.

Kenya first discovered commercial oil reserves back in 2012, which sparked hope about becoming a regional oil producer.

Yet, more than ten years later, commercial production has still not started due to various regulatory and logistical challenges.