Gulf Energy Ltd., the Nairobi-based trader of oil and gas that acquired crude discoveries made by Tullow Oil Plc in Kenya, plans to commence production next year, according to a top official.
Tullow agreed in April to sell the assets to the local firm for $120 million - following efforts over more than a decade to develop the finds - as it focuses on paying down debt. Kenya's regulator required a field development plan from the buyer for the deal to proceed. Tullow received the first $40m tranche in September.
Kenya gave an initial approval for Gulf Energy's plan for the South Lokichar project, said Cabinet Secretary for Energy Opiyo Wandayi. "I will be forwarding the approved FDP to Parliament for ratification."
The contractor will start the project and outline investments after the ratification of the plan, Wandayi said. "First oil is expected by December 2026."