By Oliver Griffin
Tullow Oil said Tuesday that it and its joint venture partners in Kenya have signed a heads of terms agreement with the country's government for the development of the South Lokichar Basin.
The oil-and-gas company said it signed the agreement alongside Total and Africa Oil Corp to capture all the key commercial principles related to implementing their joint oil project in Kenya.
Describing the agreement as a major and important milestone toward reaching a final investment decision, Tullow said the parties have agreed that the Amosing, Ngamia and Twiga fields should form the development's foundation stage, complete with a central processing facility that can process 60,000 to 80,000 barrels of oil a day.
Tullow said the joint venture partners will focus their efforts on securing financing for constructing a pipeline for the project while continuing to progress other works that lead to the selection of contractors ready for a final investment decision.
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