This archive report was first published on 6 January 2020.
Published on January 6, 2020, Tullow Oil, a UK-based oil firm, is facing significant challenges in Kenya's Turkana basin, which may jeopardize the country's plans to export oil by 2022.
The company's debt has reached $2.8 billion, making it difficult to secure funds for oil exploration. This comes as the company's CEO and Director of Exploration recently resigned, amidst allegations of poor leadership that led to a decline in oil production.
Additionally, Tullow Oil's credit rating was downgraded from B1 to B2 by Moody's, making it harder for the company to access affordable loans. This development is crucial, as the company prepares to sign the Final Investment Decision in the second half of this year, marking the beginning of commercial oil production in the Turkana Basin.
Kenya had previously shipped its first 200,000 barrels of oil in an early pilot scheme in August 2019, generating KSh1.2 billion in revenue. The country is now eagerly awaiting the start of commercial oil production in 2022.
Related:
Turkana Oil Pilot Scheme's Audit Begins
Kenya on Course to Commercially Produce Oil by 2022 – Tullow
