Tullow Oil issued an update on its operation in East Africa in its recent Trading Statement and Operational Update, specifically in Kenya. In December, Tullow saw successful results with the drilling of the Etom-2 well. The well discovered 102 meters of net oil pay in high quality reservoir sands in an untested fault block identified on recent 3D seismic. The successful Etom-2 result and additional prospectivity indicated on the new 3D seismic data around the greater Etom area and northern part of the South Lokichar Basin, highlights there is significant remaining exploration potential according to the company. Plans for further exploration drilling will be evaluated during H1 2016.
Tullow is currently drilling the Cheptuket-1 exploration well in Block 12A, spud near the end of December. The well will test a basin bounding structural closure in the undrilled Kerio Valley Basin, in a similar structural setting to the successful Ngamia and Amosing discoveries in the South Lokichar Basin. Cheptuket-1 will likely complete drilling in February after which the PR Marriott Rig-46 will demobilise, marking the end of the current drilling campaign.
As for the development of its Kenya assets, good progress continues to be made in future planning. Completion of the appraisal drilling campaign in 2015, including the successful Amosing and Ngamia Extended Well Tests, underpins a 2C resource base of 600 million barrels of oil. The Etom-2 result and surrounding prospectivity support an upside potential of 1 billion barrels of oil in the South Lokichar Basin. The draft Field Development Plan was submitted to the Kenyan government in December and will inform discussions as we progress towards potential FID of both the Kenya and Uganda upstream development projects in 2017.
In August 2015, a bilateral agreement was reached between the Presidents of Uganda and Kenya adopting the Northern Kenya route for the regional crude oil pipeline, subject to certain conditions. These conditions, which include ensuring that this is the lowest cost route, are being worked on by both Governments in conjunction with the Kenyan and Uganda upstream parties.