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RNS Number : 2702A

Tullow Oil PLC

23 May 2023

TULLOW OIL PLC

Kenya Update

23 May 2023 - Tullow Oil plc (Tullow) announces that Tullow Kenya B.V., as operator of its licences in Kenya, has been informed by its two minority partners of their intention to issue notices of withdrawal from Blocks 10BB, 13T and 10BA in the South Lokichar Basin (the "Project") for differing internal strategic reasons. As a result, Tullow's working interest in these blocks will increase from 50% to 100%.

The Board considers that owning 100% of the Project creates more optionality, gives Tullow more flexibility in the ongoing process to secure strategic partners, creates a simpler Joint Venture Partnership and streamlines project delivery. This is a low-cost development project that has the potential to unlock material value for Kenya.

The prospective strategic partners have been informed. They remain engaged and detailed farm-out discussions continue with a number of companies. Whilst the process has taken longer than expected, Tullow remains focused on securing a strategic partnership this year.

Project progress continues and the updated Field Development Plan (FDP) was submitted to the Kenyan regulator, Energy and Petroleum Regulatory Authority (EPRA), in March 2023 and is now under review by EPRA. Tullow will continue to work collaboratively with Government of Kenya and EPRA to get the FDP approved.

Following the withdrawal of the minority partners, Tullow's net Project 2C contingent resources are expected to increase from 231 mmboe to 461 mmboe, taking the Group's total contingent resources from 605 mmboe to 836 mmboe. Net capex guidance for 2023 in Kenya will increase from c.$10 million to c.$15 million, less than 5% of Group capex.

Tullow looks forward to continuing its work with the Government of Kenya and its host communities to make the region a significant energy producing province.

Ends

CONTACTS

 
 Tullow Oil plc        Camarco               Oxygène MCL 
  (London)              (London)              (Kenya) 
  (+44 20 3249 9000)    (+44 20 3757 4986)    (+254 722 799 069) 
  Nicola Rogers         Billy Clegg           Alfred Ng'ang'a 
  Matthew Evans         Georgia Edmonds 
                        Rebecca Waterworth 
====================  ====================  ====================

This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ('UK MAR'). Upon the publication of this announcement, this inside information (as defined in UK MAR) is now considered to be in the public domain. This announcement is being made on behalf of Tullow by Adam Holland, Company Secretary.

Notes to editors

Tullow is an independent oil & gas, exploration and production group which is quoted on the London and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE250 index. The Group has interests in over 30 licences across eight countries. In March 2021, Tullow committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030. For further information, please refer to our website at www.tullowoil.com .

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May 23, 2023 02:00 ET (06:00 GMT)

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