Tullow strikes more oil in Kenya

Tullow strikes more oil in Kenya

Tullow Oil (LSE:TLW) has announced the discovery of oil in a region of Kenya thought to contain at least 750 million barrels of oil.

The Africa-focused firm said an exploration well was drilled in its Emekuya-1 well in the Northern section of the South Lokichar basin, located in the North-Eastern region of Kenya.

The subsequent detection of oil reserves in the Emekuya-1 well follows a similar discovery made by Tullow in the South Lokichar basin back in January.

Last year, Africa Oil Corp. reported that an independent review had found that oil reserves in the South Lokichar basin were 24% higher than initial estimates, which has prompted a spate of new exploration programmes in the region.

Angus McCoss, Tullow’s exploration director, said: “We now look forward to the remainder of the Kenya exploration and appraisal campaign in support of the ongoing work to prepare this important asset for full field development.”

The UK-based company is looking to take advantage of Kenya’s new-found abundance of oil reserves, and aims to build a crude oil pipeline to the coast with the help of its partners.