Tullow Oil faces the possibility of shutting down its Turkana Oil Project activities unless it can find a strategic investor.
Tullow argues that failing to find a strategic partner will impede its ability to bring the Kenya project to a final investment decision and capture value, according to its most recent annual report.
Nonetheless, the company says it is in talks with possible purchasers about a variety of business options.
Tullow would be able to mitigate its risks for the multibillion-dollar project, which involves the construction of a crude pipeline and oilfield processing facilities.
Tullow holds a 50% operating stake in blocks 10BB and 13T in Turkana County’s South Lokichar basin, where it discovered roughly a billion barrels of petroleum in 2012. Each of Africa Oil Corporation and Total owns a quarter of the company.
Kenya has given Tullow until December 2021 to produce a detailed investment plan for oil production in Turkana or face losing two exploration fields.
Tullow Oil predicted in January that it would spend KSh565 million on capital expenditures in Kenya for oil production this year.