In late April 2020, press confirmed that Total and Tullow intend to reduce their interest in Block 10BB and Block 13T containing the Ngamia, Amosing and Twiga oil fields development project (Lokichar project) as well as in Block 10BA. According to Tullow, the partial farm-out by the latter and Total is progressing but with some delays induced by the COVID-19 crisis. Industry sources suggested that CNOOC would be interest in the Kenyan assets. The project is situated in the Lokichar Trough (EARS, East Branch).  Considering the volatility in the oil market induced by the coronavirus disease 2019 (COVID-19) in March 2020, the Final Investment Decision (FID) for the Ngamia, Amosing and Twiga fields development project may be delayed to 2023. Before the crisis, the FID was expected in late 2020 with first oil production expected two to three years after.    In February 2018 Tullow suggested to the Kenyan government to start the development phase with the Ngamia and Amosing fields. The Twiga field was added in February 2019 to the project. Tullow increased the oil production for the Early Oil Pilot Scheme (EOPS) from 600 b/d to 2,000 b/d in May 2019. In June 2019, several agreements around fiscal and commercial terms were signed between the joint-ventures partners and the government. In addition, FEED studies for the upstream and midstream project have been also completed.  The development of the Foundation Stage will include the construction of a 60,000 to 80,000 b/d central processing facility (CPF) and the export pipeline to Lamu. In addition, 120 wells through 18 well pads for the Ngamia field will be involved and 70 wells through seven well pads for the Amosing field. The Foundation Stage is expected to produce about 38% of the 2C resources (210 MMbo out of 560 MMbo) with a plateau production between 60,000 and 80,000 b/d. The plateau production could be increase to 100,000 b/d with the development of the upside potential and the production of the remaining 2C resources. Pmean for the whole Lokichar Trough are estimated at 750 MMbbl. Tullow estimates total gross capex is expected to reach USD 2.9 billion (USD 1.8 billion for upstream and USD 1.1 billion for the pipeline).     Interest in the licences is held by Tullow Kenya BV (50% + operator), Africa Oil BV (25%) and Total E&P Danmark A/S (25%).
Kenya, Block 10BA