Tullow Oil has announced it expects to produce oil for the first time in Kenya by 2020. The announcement, made through its 2015 half-year report, puts to rest speculation that had earlier suggested Kenya would start producing oil by 2017.
In the report released on Wednesday (today), the multinational oil exploration company says a sanction decision for oil production is expected by the end of 2016, and the first production will happen “approximately three and a half years post project sanction”.
The company has also allocated $100 million (Sh10.2 billion) for exploration and appraisal drilling in Kenya. For its pre-development activities, Tullow has set aside 225 million dollars (Sh23 billion) to be used in Kenya and Uganda. The two countries are working together towards sharing an oil exportation pipeline.