Multinational exploration company Tullow Oil has revised the value of its assets in Kenya, writing off $17.9 million as the company awaits updates on the Field Development Plan submitted to the Kenyan government in March 2023 for its Turkana project.
The value of Tullow’s Kenya assets saw a downward revision from $260.1 million in December 2022 to $242.2 million by the end of 2023. Tullow anticipates that resolving uncertainties will enable it to reverse all impairments, which include a $410 million write-off in 2020.
Tullow pointed to uncertainties in realizing commercial value as the primary cause for the impairment.
In June 2023, Tullow assumed sole ownership of the Turkana oil deposits after its joint venture partners, energy companies Africa Oil Corporation and TotalEnergies, exited the partnership, citing differing internal strategic objectives as reasons.
The oilfields have a production capacity of 120,000 barrels of oil per day, with a focus on developing five existing wells in South Lokichar in Turkana situated in Blocks 13T and 10BB.