Category : Business | Sub Category : | Posted on: 2020-02-19 05:17:54Tweet
Tullow Oil Plc announced plans to reduce its staff. The company is expected to dismiss 300 employees globally.
Standard Newspaper reported that Tullow may be facing financial crisis due to the global reduction of the prices of fuel. Many people are wondering whether Tullow project may be viable in Kenya, with others turning to social media terming it as a scam.
The dream of turning Kenya’s oil ores into a commercially viable venture is far from realization. Experts have cast serious doubts on the amount of oil that can be sourced from Turkana with poor oil prices shattering the country’s dream of entering the league of oil exporting countries.
The government spent sh7 billion of taxpayers’ money for Tullow’s oil exploration, but so far only sh12 billion has been earned from the Early Oil Pilot Scheme.
Tullow Oil Company assured the government that it will pump out 750 million barrels from Lokichar oil reserve. However, their assurance has been revised down to 560 million barrels to be pumped.
The government of Kenya had high hopes of gaining more income from oil exportation with preliminary studies indicating an expected income generation of sh900 billion.
The expose by the Standard newspaper prompted Tullow Kenya to respond by saying that it is not broke and still working to put Kenya on the chart of oil exporters.
A statement posted by the Standard and seen by Phode News, Tullow Kenya Managing Director Martin Mbogo is quoted saying, “Project Oil Kenya remains commercially viable and is underpinned by substantial underlying reserves. Tullow would not be continuing to invest if this was not the case.”