Tullow Oil, Backed By Samuel Dossou-aworet, Writes Down Kenya Assets By 145.4 Million

Tullow Oil slashed the value of its Kenyan assets to 112.2 million, raising doubts over the long-delayed Turkana oil projects commercial viability.

The company faces setbacks in attracting a strategic partner and finalizing infrastructure and fiscal terms needed to move the project forward.

An international tribunal ruled Tullow is not liable for a 320 million tax claim, but two other disputes with Ghana remain unresolved.

Tullow Oil Plc, the London-listed oil and gas explorer in which Gabonese oil magnate Samuel Dossou-Aworet holds a significant stake, has written off another 145.4 million from its Kenyan assets. This underscores growing doubts about whether the company can push its long-delayed Turkana oil project to commercial production.

The latest write-down reduces the value of Tullows Kenyan assets from 253.3 million to 112.2 million. It follows a similar adjustment last year, when the company lowered the valuation from 260.1 million in December 2022 to 242.2 million by the end of 2023.

Tullow has been struggling to secure a strategic partner and financing for the project while waiting on the Kenyan government to finalize infrastructure plans and fiscal terms that would make the venture viable. The company acknowledged these challenges, stating:

Despite the delays associated with securing governmental approval and a strategic partner, Kenya remains a material option to drive value and growth and we are continuing to work with the Kenyan government to seek support for a Field Development Plan FDP and identify a long-term strategic partner, which is a key milestone to achieve a Final Investment Decision FID.

So far in 2024, Tullow has written off a total of 213 million in exploration costsup from 27 million in 2023. The bulk of that comes from Kenya, where the extension of the FDP review deadline to June 2025 prompted a reassessment of the risks, leading to the 145 million impairment.