Tullow Oil, a multinational exploration company, has adjusted the value of its assets in Kenya, writing off $17.9 million.
This decision comes as the company awaits updates on the Field Development Plan submitted to the Kenyan government in March 2023 for its Turkana project.
The revised valuation of Tullow’s Kenya assets declined from $260.1 million in December 2022 to $242.2 million by the end of 2023.
Tullow aims to reverse these impairments once uncertainties are resolved, which include a $410 million write-off in 2020.
Tullow attributes the primary cause of impairment to uncertainties surrounding the realization of commercial value.
In June 2023, Tullow gained sole ownership of the Turkana oil deposits following the exit of its joint venture partners, Africa Oil Corporation and TotalEnergies. The partners cited differing internal strategic objectives as reasons for their departure.
The oilfields, with a production capacity of 120,000 barrels per day, focus on developing five existing wells in South Lokichar, Turkana, situated in Blocks 13T and 10BB.
