We’re liquid and here to stay, Tullow Oil tells Kenya, Uganda

“The board has committed to undertaking a thorough reassessment of the group’s cost base and future investment plans to allocate appropriate capital to the group’s core production assets, development projects and continued exploration.

“The board believes this reassessment and the resultant actions will reset the business and deliver value to shareholders.”

Tullow lost half of its market value after its shares took a nosedive on December 9, following a surprise exit of its Chief Executive Officer Paul McDade, and Exploration Director Angus McCoss. The two had been at the company for over a decade.

The company also cut its production outlook and suspended dividend payment.

The firm, however, insists that its investment plans in Kenya and Uganda will not be affected by the difficulties that it is going through, giving hope to the East African states whose prospects for petrodollars largely hang on the fate of the UK company.

Mbogo says Tullow still has enough cash to finance its operations, insisting that the dip in share value will not dent its ability to raise funding for future projects. “We do not see the change having an impact on Uganda and Kenya Projects. Our focus remains to deliver an FID (final investment decision) in Kenya in late 2020 while in Uganda, our focus remains to progress the project and together with our Uganda Joint Venture partners, we are engaging the government with a view to finding an amicable solution to pending issues that have delayed FID,” Mbogo told The EastAfrican.