Africa Oil Corporation, the partner of Tullow in Turkana’s exploration fields, has been given regulatory approval to sell 50 per cent of its assets in three Kenyan blocks to Maersk Oil & Gas of Denmark
Under the new deal, Africa Oil will transfer half of its interest in blocks 10BB, 13T, and 10BA in Kenya and the Rift basin and South Omo blocks in Ethiopia, the firm revealed.
“This transaction puts Africa Oil in the position of not requiring any additional equity financing prior to first oil and will allow us weather the current difficult oil price environment should it continue into 2016,” said Africa Oil’s president and chief executive officer Keith Hill in a statement.
Crude prices have dropped significantly, measuring at US$32 per barrel, as global oil and gas companies shift focus to fields where production is currently taking place.
“We feel Maersk will be an excellent partner in terms of technical and financial strength and experience critical to moving the development project forward,” added Hill.