George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
When the Parliament green lights the Project the investment will be signed with Indian firm. We will know the decision before end of September. I wish Tullow would remind the market how much this is worth. Its like 120,000 bopd or $3.7 Billion revenue at $85 oil... and currently we own 100%. It possible we get a 1 or 2 huge lumps of cash for a slice of the project.
Tullows sp will return to 40p 50p 60p as oil is rising. Looks like we will see $90 Oil next week with all the cuts.
If you think oil will return to $100 then Tullow is best oil play. No windfall tax.
Russia has announced plans to cut its oil exports by 300,000 barrels per day in September in an effort to maintain a balanced oil market. This reduction comes on top of the previously pledged decrease in oil output of around 500,000 barrels per day from March until the end of the year.
As the world’s second-largest oil exporter, after Saudi Arabia, Russia’s decision to voluntarily decrease its oil supply will help to support global oil prices. Saudi Arabia also recently announced an extension of its voluntary cut in oil output by one million barrels per day for another month, including September.
https://www.energyportal.eu/news/russia-to-cut-oil-exports-by-300000-bpd-in-september-2/120649/
Saudi Arabia will extend a 1 million barrel per day voluntary crude oil output cut into September, in the third month of such declines, the state-owned Saudi Press Agency said Thursday.
“In effect, the Kingdom’s production for the month of September 2023 will be approximately 9 million barrels per day,” it said, citing a source from the Saudi ministry of energy.
The 1 million barrel per day cut, which was also implemented in July and August, “can be extended or extended and deepened,” SPA said.
https://www.cnbc.com/2023/08/03/saudi-arabia-to-extend-voluntary-1-million-barrel-per-day-oil-production-cut.html
The ministry hopes to have made a decision on the Final Development Plan by end of September, which would then be tabled before Cabinet, and a final vote by Parliament.
This will inform among others, if Kenya will opt for a refinery or construction of the 852 km Lokichar-Lamu pipeline for transporting crude oil from Turkana, to Lamu port for export.
Taking full control creates more optionality, gives Tullow more flexibility in the on-going process to secure strategic partners, creates a simpler Joint Venture Partnership and streamlines project delivery, according to Tullow Oil plc CEO Rahul Dhir.
On Monday, National Treasury CS Njuguna Ndungú called on industry players, led by the Petroleum Institute of East Africa (PIEA), to formulate modalities of partnering with the Kenya Kwanza Administration to invest in the oil pipeline.
This is through a Public Private Partnership initiative.
“I envision the government having minority shares to facilitate private-sector-led administration and management of this project to benefit from the efficiencies provided by the private sector. This will have benefits for the region and lower costs,”Ndungú said at a PIEA vent in Nairobi.
The institute is the professional body for the oil and gas industry in the region.
Ndungú called on PIEA to forward incentives it requires to mobilise foreign direct investments in upstream activities to exploit the existing oil and gas reserves within the country, and tap into their immense benefits once exploited.
This, as the country builds up investments in renewable energy.
https://www.the-star.co.ke/business/kenya/2023-08-01-indian-firm-renews-interest-in-tullows-turkana-oil-blocks/
Indian Oil Company–ONGC Videsh Limited (OVL) could take up a stake in Tullow Oil’s Kenyan assets, with the British firm hoping to secure strategic partnership this year.
This follows the exit of joint venture partners–Africa Oil Corp and Total Energies, a move said to have given Tullow flexibility in negotiations with strategic partners. Tullow has since described the recent withdrawal of the Kenya Joint Venture Partners, as “ due to differing internal strategic reasons.
Canadian firm-Africa Oil Corp reportedly dropped from the project on concerns over possibilities of finding an investor who would support commercial exports of Kenya's crude oil, including construction of the 824km Lokichar-Lamu oil pipeline. Total on the other hand has shifted focus on already producing fields in other markets, with the exits throwing Project Oil Kenya into disarray. It left Tullow with no option but to assume a 100 per cent equity position.
The joint venture break up came on the back of a slow negotiation process between Tullow and potential investors, where ONGC Videsh and Indian Oil Corp were among potential targets in talks the started in November last year.
The two would then develop cold feet in May this year, leaving Tullow at crossroads on its plans to offload at least $3.4 billion (Sh484.4 billion) stake at the Lokichar oil project. With the breakup of the JV, ONGC Videsh is reported to be seeking clarity before making an investment decision, with Tullow yesterday confirming talks.
“Tullow confirms that several interest parties including India’s ONGC Videsh Limited have expressed their interest in coming on-board as a strategic partner in the development of our Kenyan asset,” Tullow Kenya BV managing director Madhan Srinivasan, told the Star. Tullow assets in Kenya covers blocks 10BB, 13T, and 10BA in the South Lokichar Basin and is operated by Tullow Kenya BV. “Tullow is however not at liberty to publicly make any further comment as engagements are still in progress,” Srinivasan said. However, he said the commits to making the necessary public disclosures once specific milestones are achieved. All prospective strategic partners remain engaged and detailed farm-out discussions continue with a number of companies. “Whilst the process has taken longer than expected, Tullow remains focused on securing a strategic partnership this year, ” he said.
The latest developments come even as the government continues to support Tullow in search of strategic partners, whilst calling on the private sector to invest in related infrastructure, including the planned crude oil pipeline.
According to Energy Cabinet Secretary Davies Chirchir, the government is in talks with Chinese and Indian investors into putting capital in the project, as it reviews the Final Investment Decision tabled by Tullow, He said Kenya would continue to back Tullow's push for commercial oil production in Turkana, despite the timelines shift to beyond 2027.
Here is the latest investor video. very in depth and lots of questions answered.
https://lumiagmukstreams.s3.eu-west-2.amazonaws.com/Archive+2023/TullowOil..mp4
Tullow does not pay windfall tax. Pays oil tax in Africa. Tullow best oil stock for upside with high oil prices. some of Tullow's hedges fell of in 2023 and the rest in 2024, so now we are exposed to high oil prices for the first time. This is why the sp is moving up. Looking very good.
Oil Price looks like its heading to $90 this week !
We are still waiting for news on Kenya Parliament approval and also Gas sales agreement, both decisions could happen any day. Anyone know how much extra revenue/profit the Gas agreement would be worth?
Https://lumiagmukstreams.s3.eu-west-2.amazonaws.com/Archive+2023/TullowOil..mp4
this was the investor presentation a few months ago, its really good. tons of good questions at the end.
huge spike in profits in 2024 and 2025.
Is Kenya decision in August or September? this will be massive.
Keith Hill Africa Oil CEO said “learned a little lesson in Kenya… about how difficult it is these days under the current ESG environment to build and finance big onshore assets.”
The company recently pulled out of two blocks in the South Lokichar Basin alongside TotalEnergies, leaving majority stakeholder Tullow as the sole operator. Tullow is currently searching for a strategic partner.
“The biggest thing was our pipeline — the Ugandans and Total decided to go through Tanzania [with the East Africa Crude Oil Pipeline]. When they made that decision that really challenged our project economically,” said Hill. The second issue was Tullow’s search for a strategic partner, Hill said. “We got very down the road, but the process is taking too long,” he said. Tullow is in advanced discussions with Indian state-owned companies to farm into the project, which Hill still expects to go ahead.
https://naija247news.com/2023/07/25/africa-oil-to-shift-away-from-exploration-towards-offshore-producing-assets/
If this gets approved for production as stated by the Media in the next few weeks, then we really do own a $30+ billion asset. how will the SP react ? our profit will be over $1billion a year ? and our Debt will be Zero?
NOC stands to earn $8 billion at the current rate of $80 a barrel and they only have 22.5% !! we own the rest.
it's just incredible.... our sp should rise back to 2012 prices after all these years of waiting.
this isn't some random drill we are doing, we already found the oil, its ready to pump, just need the pipes and infrastructure.
... is it finally about to happen ?
Anton in your opinion what is the 77.5% Asset worth ? maybe tullow could clear its debt selling a large stake ?
Https://www.metrobankonline.co.uk/investor-relations/
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Date: Tuesday 1 August - 9:30AM (UK time)
should be better than expected results. looking forward to it.
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Also Lorna said in the interview helium sells for $500 m/cf ?.... natural gas sells for $2.60 m/cf
the prize must be over $50 billion of Helium deposit.
I personally think we could hit 23-28p again like last time
Massive Underground Helium Reserve Found in Tanzania
If you didn't know helium deposits in Tanzania were confirmed by University of Oxford's Department of Earth Sciences
have a read.
https://www.livescience.com/60607-helium-reserve-discovered-in-tanzania-photos.html
Important to know the Natural Gas price is $2.60 per M/cf
However Helium is 100x more expensive at $280 per m/cf
there's 138 billion cubic feet discovered Recoverable helium.......Helium one are drilling probably the largest helium deposit in the world. really this is huge.
https://www.youtube.com/watch?v=NMNTd0HJ3vM&t=630s