ONGC Videsh reconsiders plan to buy stake in Kenyan oil project

(Bloomberg) – ONGC Videsh Ltd. is reconsidering taking a stake in Tullow Oil Plc’s Kenya assets following the exit of other partners in the project.

The Indian oil company needs more clarity after TotalEnergies SE and Africa Oil Corp. quit the Kenya consortium several weeks ago, an ONGC executive, who asked not to be named because the information was private, told reporters on Tuesday. ONGC and Oil India Ltd.’s discussions with Tullow started before these companies decided to exit.

Tullow discovered crude oil in Kenya in 2012 but has yet to find strategic partners that would unlock sufficient funding for the project. The country’s government also has yet to approve a development plan for the resources.

Tullow said there are still potential strategic partners for the Kenya venture, without naming any companies.

“The prospective partners remain engaged and detailed farm-out discussions continue with a number of companies,” a Tullow spokesperson said by email. The company remains focused on securing a partnership this year.

An Oil India spokesman said the company is “still evaluating” taking a stake in the Kenyan oil project.