Kenya -23 May 2023 22:39
This is my take on the Kenya update.
Total already have enough risk/ environmental pressure with the Uganda development, they are not going to have another project distracting the Uganda development, for a small 25% stake.
Africa oil have their pockets empty, with the Venus Discovery, (which coincidentally Tullow gave up their share, prior to the discovery).
The strategic partner won’t want a 50% stake, they want the full 100%.
Kenya government have said in the past that more partners involved would make it complicated sale.
Basically the government want a cut, and what’s the best way, then agree the sale to a state oil company like SINOPEC, 20% to Kenya remainder to ONG/SIN.
Tullow get the back costs of development, of $1.8 Billion, enough to be debt free, and able to fully develop Jubilee/Ten Gas reserves.
Everyone’s a winner.
Expecting an RNS tomorrow with more information on this, as the last two days has been leaked, prior to tomorrow’s operational update.
Going to be an interesting AGM Webinar tomorrow, questions already to go.
Also POO is on the rise.
Could be our time…
Gl all
The Board considers that owning 100% of the Project creates more optionality, gives Tullow more flexibility in the ongoing process to secure strategic partners, creates a simpler Joint Venture Partnership and streamlines project delivery. This is a low-cost development project that has the potential to unlock material value for Kenya.