Indian company Oil India and China’s International Petroleum Corporation (IPC) are reportedly in talks for a 50 percent stake in Tullow Oil’s $3.4 billion Kenya oilfield.
Tullow Oil, an oil exploration and production company based in the United Kingdom, is said to be looking to sell a 50 percent stake in its Kenya oilfield to raise funds for developing its operations in East Africa. According to reports, talks between Oil India and IPC for the stake are ongoing and could result in a deal being finalized soon.
The Kenya oilfield is estimated to contain up to 670 million barrels of recoverable crude oil. If the deal goes ahead, it would be Oil India’s second major investment in the East African country after it acquired a 30 percent stake in Uganda’s Lake Albert oil project in 2018.
Reports indicate that the Nile Oil, a consortium of Chinese and local firms, is also interested in the stake and plans to make an offer. There has also been speculation that South Africa-based Pan-African Energy are currently in talks with Tullow Oil to acquire the stake.