UK Firm To Abandon Uhuru’s Multi-billion Project


Tullow Oil Corporation that has been prospecting for oil in Ngamia 1 and Ngamia 2 in Turkana County has hinted at suspending their operations in the country.

In a statement released on May 15, 2020, the giant corporation, through its mother company Africa Oil Corp, announced that its stay in the country was not assured post-Covid-19.

In its ‘forward-looking information’, the corporation announced that its stay or departure would be informed by ongoing negotiations with the government, but was not certain that the discussions would yield much fruit.

Workers walk past storage tanks at Tullow Oil's Ngamia 8 drilling site in Lokichar, Turkana County.
Workers walk past storage tanks at Tullow Oil’s Ngamia 8 drilling site in Lokichar, Turkana County. | FACEBOOK

“Forward-looking information includes but is not limited to the company’s position that the operating environment, adversely impacted by the Covid-19 pandemic, will improve and the potential outcome of discussions between Africa Oil, its partners and Government of Kenya.

“There is no certainty such discussions with the Government of Kenya will result in a satisfactory outcome and may result in the company’s Kenyan project being significantly modified or ceased in its entirety.

“Such statements and information (together, “forward-looking statements”) relate to future events or the company’s future performance, business prospects or opportunities,” Africa Oil Corp announced.

In the same breath, the company announced that it was suspending its services in the country under the provisions of force majeure (Act of God) due to the unpredictable nature of the Covid-19 pandemic.

It further announced that the effects of the pandemic were exacerbated by the recent unprecedented crash in global crude oil prices which has significantly hampered the company’s operations.

“These declarations are the result of the impact of the Covid-19 pandemic on the operations, including Kenyan government’s restrictions on domestic and international travel, and recent tax changes that adversely impact the project economics.

“Declaration of force majeure allows time for an improvement in the operating environment and for the joint venture partners, to discuss with the government of Kenya the best way forward for this strategic project,” Tullow announced.

The company, however, clarified that the forward-looking statements involve both known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ from those anticipated.

“No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon,” the statement concluded on an ambiguous note.