Tullow Oil Boosts its 2013 Growth Strategy for Exploration in Kenya

Tullow, a British oil firm, said that success with oil exploration in Kenya has added momentum to its exploration-led strategy for growth this year.

Tullow said that the company accomplished a lot last year, highlighting its success in establishing Kenya as a new oil country with two primary discoveries.

The company currently plans more oil exploration and appraisal wells in both Ethiopia and Kenya in its oil drilling schedule this 2013 after it found a major oil basin in Kenya with its initial wells.

The planned wells consist of Block 10A’s Paipai-1 wildcat which is now approaching a target depth of 3, 850 meters. Results are expected in February.

Moreover, it has ended a testing program at Twiga South-1 to gain knowledge of natural differences in the performance of the reservoir. The company also expects completion of this program in the month to come.

Five tests are set, three of which to be performed in the reservoir of the Upper Lokhone. Operations following that will consist of oil drilling in the Etuko-1 well, previously called the Kamba prospect, and testing of Ngamia-1′s flow.

Tullow owns an interest of 50 percent in all of Kenya’s wells and prospects, including those it will explore within this year.

According to the company, its successful finds and oil exploration activities, together with the recent primary offshore gas finds by its peers in the industry, have established the country as an exciting fresh region of energy.

Tullow said that it gained a 72 percent success ratio of exploration and appraisal, which is about 33 of 46 wells in spite of some recent dry holes.

The oil firm is planning more than 40 wells this year, aiming for an average of one billion oil barrels in Kenya, Mauritania, French Guiana, Norway, Mozambique and Ethiopia. This will require significant investments in oil exploration equipment, technology and personnel.

The oil exploration firm said that the contingent resources of its group have been improved by the addition of fresh resources following initial finds in the Ivory Coast and Kenya as well as success in appraisal in Uganda.