Indian refiner mulled stake in Tullow Kenya

Indian Oil Corp. has looked at potentially investing in Tullow Oil Plc’s $3.4 billion Kenyan project, according to people familiar with the information.

Tullow Chief Executive Officer Rahul Dhir has previously said a deal with a strategic partner could include operatorship of the development that would include an 825-kilometre (513-mile) pipeline running from the oil discoveries in Turkana to the port of Lamu. The project has planned production of 120,000 barrels a day.

Indian Oil, the Asian nation’s biggest refiner, has considered the opportunity, said one of the people, who declined to be identified because the matter isn’t public. While discussions haven’t progressed further, the proposal hasn’t been dropped, the person said.

Dealing with debt

A spokesperson for Indian Oil didn’t reply to emails seeking comment, while Tullow declined to comment. “Constructive discussions with interested parties are progressing,” Tullow said about finding a partner for the Kenyan project in an annual results statement on March 9.

Tullow submitted a final field development program to the government in December, reviving the project that had stalled while the company focused on dealing with debt and finalising its strategy. The Vancouver-based partner in the Kenyan development, signaled momentum has picked up again.

There are “very interested parties” and finding a strategic partner is getting closer, Chief Financial Officer Pascal Nicodeme said on a March 1 conference call.