The Covid-19 pandemic has come as the last nail on the coffin of Kenya’s oil export dream as currently structured after British oil major Tullow Oil served the government with a force majeure notice, which means that it can no longer deliver its part of the contract.
On Friday, Africa Oil Corp revealed to its shareholders in Canada that its partner here, Tullow Oil Kenya, had submitted notices of force majeure to the Ministry of Petroleum and Mining on Friday on behalf of the joint venture partners in the Turkana oil blocks.
The firm said it hopes the operating environment, adversely impacted by the Covid-19 pandemic, to improve and the potential outcome of discussions between Africa Oil, its partners and government of Kenya.
The Asian giant has emerged as the potential partner that will help Kenya realise its oil dream after key players - Tullow Oil Plc and Total SA - started the process of selling part of their stakes in oil discoveries in Kenya.
Currently, Tullow has a 50 per cent stake in the project, with Canadian firm Africa Oil holding 25, and French firm Total SA holding the other 25 per cent.
