Africa Oil Corporation has announced that it has insufficient capital to complete development activities in Kenya’s oil fields located in the South Lokichar Basin, Turkana County.
In a report to its shareholders, AOC said it will, however, continue to assess the sufficiency of its capital resources until a field development and financial plan is approved.
The announcement comes after Tullow Oil, the operating partner on Blocks 10BB and 13T in Kenya, submitted notices of Force Majeure to the Kenyan Ministry of Petroleum and Mining on behalf of the joint venture partners in these blocks, Africa Oil Corporation and Total.
AOC reports that in-field and the Early Oil Pilot Scheme (EOPS) which commenced in June of 2018, are currently suspended.
EOPS is a crude oil export scheme aimed at assisting Tullow Oil and its joint venture partners, Africa Oil, Total South Africa and the Government of Kenya to test the market and review the logistics of handling the crude export in readiness for the Full Field Development of the South-Lokichar oil basin.
