Kenya: UK oil explorer Tullow production stops due to oil prices fall and the naval virus epidemic

Tullow Oil rig in Turkana, Kenya

Key investment resolutions by UK oil explorer Tullow concerning Kenya's oil project are anticipated to slow due to the downfall in oil prices over the pandemic and a geopolitical price war, analysts have projected.


A report by GlobalData, a leading data and analytics company, says firms like Tullow whose Kenya project has faced delays are set to continue facing more problems related to the economic climate.


The report says as business attitude descends, sub-Saharan Africa is likely to see a slowdown in upstream activity for ongoing projects and final investment decisions (FIDs) in 2020.


“With global crude oil prices currently hovering around the $30 per barrel mark and cases of COVID-19 on the rise daily, companies have been forced to rethink project timelines for 2020 and operators are beginning to scale back spending in the short-term as they struggle to source adequate capital," Conor Ward, oil and gas analyst at GlobalData, said.

“The break-even oil and gas prices of the majority of projects with anticipated final investment decision (FID) for 2020 are now considered as high risk."