Photo | courtesy.
Tullow Oil has written off Sh18.8 billion from its Kenyan assets, citing prolonged government delays, investor uncertainty, and infrastructure setbacks in the Turkana oil project.
In its latest financial report, the British oil exploration company attributed the impairment of stalled progress in developing the Lokichar oil fields.
The project, once seen as a transformative opportunity for Kenya’s oil sector, has faced repeated challenges, including bureaucratic delays and difficulties securing investment.
“Tullow has taken an impairment of approximately $125 million (Sh18.8 billion) on its Kenyan assets, given the lack of tangible progress on the project,” the company stated in its report.
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Tullow has been actively seeking strategic investors to fund the project, but efforts have yet to bear fruit.
Delays in government approvals and uncertainties surrounding the construction of a crude oil export pipeline have further complicated the company’s plans.
Despite the financial write-off, Tullow says it remains engaged in discussions with the Kenyan government and potential partners.
Consequently, analysts view the move as a sign of declining confidence in the viability of Kenya’s oil ambitions.
Kenya discovered commercial oil reserves in 2012, sparking optimism about becoming a regional oil producer.
However, over a decade later, commercial production has yet to commence due to regulatory and logistical hurdles.
