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Turkana Oil Works to Resume as Tullow Lifts Contract Freeze

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 24 August 2020.

On August 24, 2020, British firm Tullow Oil lifted its declaration of force majeure on its main licences in Kenya, a move that was feared would further delay a final investment decision expected this year on the Turkana fields.

The company's partner Africa Oil stated that the lifting of the force majeure notices was facilitated by the easing of Covid-19 restrictions worldwide and the resumption of local and international flights.

According to Africa Oil, the restart of various workstreams under the project was made possible by the improvement in Covid-19 pandemic restrictions.

Force majeure refers to unexpected external circumstances that prevent a party to a contract from meeting their obligations.

Declaring force majeure may allow a party to a contract to avoid liability for non-performance.

Tullow Oil had earlier stated that the force majeure declaration would have provided time for the operating environment to improve and for the joint venture partners to hold discussions with the Kenyan government on the best way forward for the project.

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