Firm with a knack for finding oil

Tullow Oil Plc the company that discovered oil in Turkana is not new to the business of oil exploration in the region. It has successfully explored oil in Uganda at Lake Albert Rift Basin.

The British based company is an independent multi-billion gas and oil exploration and production Group with interests in almost every part of the globe.

The significance of the oil discovery is reflected by the fact that its shares rose more than 4 per cent after the announcement. Tullow is quoted on the London, Ghana and Irish Stock exchanges.

Last year, it recorded over $1 billion (Sh83 billion) in profit, with some of its major projects in the year being the basin opening discovery in South America, with 74 per cent success ratio, according to information posted in its website.

Discoveries in Africa

The company also completed $2.9 billion farm in Uganda in February 2012. “2011 was a good year for Tullow. Industry leading exploration success continued with the opening of a major new basin offshore, French Guiana as well as further discoveries in Africa,” it says.

The Group has interests in over 90 production and exploration licences in 22 countries which are managed as three regional business units, namely- West & North Africa, South & East Africa and Europe, South America and Asia.

In Africa, Tullow has production in Ghana, Gabon, Côte d’Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea with two large appraisal and development programmes in Ghana and Uganda.

Tullow also has exploration interests in Gabon, Côte d’Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Tanzania, Madagascar, Namibia, Kenya and Ethiopia.

Tullow’s European interests are focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area and in the Netherlands where it has offshore gas production, development and exploration opportunities.

In South Asia, Tullow has exploration and production in Bangladesh and exploration interests in Pakistan. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.

In Uganda, Tullow says it discovery is equivalent to a gross of 1.1 billion barrels of oil but believes the basin has an additional 1.4 billion barrels of oil yet to find.

Its discovery of oil in Kenya, is a major boost to the company’s business, which is bound to contribute more to its revenues and profits in the coming years.

Tullow showed its intention when it signed an agreement for 50 per cent interest in block 10BA of Centric Energy near Lodwar Town, besides a half stake of Africa Oil Corp in six exploration licences in Kenya and Ethiopia.

The deal was sealed at a cost of $34 million (Sh2.7 billion). Tullow’s exploration director, Mr Angus McCoss, at the time said the East African Rift Basin acreage shared geological attributes with the Lake Albert Rift Basin in Uganda, where the company found commercial oil deposits, giving hope that a similar discovery could be made in Kenya.

“We are delighted to be extending our acreage across prospective East African rift basins of Kenya and Ethiopia. We look forward to working with our new partners and applying our technical insight,” said Mr McCoss.

The first well is to be drilled in five years if results are encouraging. “Pursuant to agreements, Tullow will earn 50 per cent participating interest in production sharing contract (PSC) and assume operatorship,” said Centric’s chief executive Alec Robinson.