Tullow bolsters Africa holdings

UK-BASED TULLOW Oil is beefing up its East African portfolio, taking 50 per cent stakes in six exploration licences in the Kenyan and Ethiopian sectors of the East African Rift basin.

The East African Rift basin has similar geology to Uganda's Lake Albert Rift basin, a core area for Tullow. The company has discovered oilfields in the lake Albert area large enough to turn Uganda into a top-50 oil producer.

Tullow will become the operator of five licences as part of a deal with Canadian explorer Africa Oil, building on a farm-in agreement on a sixth block in the same region announced in August with Canada's Centric Energy.

Under the terms of the deal, which is subject to government approvals, Tullow said it would reimburse pro-rata past costs in each block and pay Africa Oil's future costs up to US$23.75mn.

 

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