IndianOil and ONGC Videsh cancel Kenya Oil Field Stake deal

25 May 2023 CW Team

Insiders familiar with the matter revealed that the decision to withdraw from the negotiations, which had been ongoing for several months, was made after senior executives from both Indian companies visited Kenya in July of the previous year. The exact reason behind their withdrawal, however, remains undisclosed.

It is worth noting that Tullow Oil's CEO, Rahul Dhir, has a connection to India. He previously served as the head of Cairn India when the company, the Indian subsidiary of the then-independent Scottish explorer, made one of the largest onshore oil and gas discoveries in India's Barmer district in Rajasthan. Cairn India was acquired by Vedanta in 2011 and later merged with its parent company in 2017.

Indian Oil had initially shown interest in acquiring a stake in the Lokichar oil field project in March 2022. However, these preliminary contacts with Tullow did not progress, potentially due to the scale of the project and the required investment. Subsequently, Indian Oil brought in ONGC Videsh, which offered expertise in operating oil fields.

Tullow currently holds a 50 per cent stake in the south Lokichar field and is willing to relinquish operatorship in favour of a strategic partner. Total of France and Africa Oil Corporation each hold a 25 per cent stake.

The oil fields are situated in blocks 10BB and 13T, and the projected daily oil production is 120,000 barrels. The total estimated oil recovery over the lifespan of the field is 585 million barrels.

Similar to the Barmer crude, Lokichar oil is waxy in nature. Both projects involve an 825-kilometre heated pipeline to transport the crude to Lamu for shipping. Dhir was appointed as Tullow CEO in July 2020, shortly after his Africa-focused company, Delonex, secured $600 million in funding from Warburg Pincus, following his departure from Cairn India.

Also Read
New railway lines to boost connectivity in Odisha
PM Modi dedicates Millions to railway projects in Odisha

Indian Oil (IOC) and its partner ONGC Videsh have decided to terminate discussions regarding the purchase of a stake in Tullow Oil's Lokichar oil field in Kenya. This deal, which was estimated to be valued at approximately $2 billion last year, will no longer proceed. Insiders familiar with the matter revealed that the decision to withdraw from the negotiations, which had been ongoing for several months, was made after senior executives from both Indian companies visited Kenya in July of the previous year. The exact reason behind their withdrawal, however, remains undisclosed. It is worth noting that Tullow Oil's CEO, Rahul Dhir, has a connection to India. He previously served as the head of Cairn India when the company, the Indian subsidiary of the then-independent Scottish explorer, made one of the largest onshore oil and gas discoveries in India's Barmer district in Rajasthan. Cairn India was acquired by Vedanta in 2011 and later merged with its parent company in 2017. Indian Oil had initially shown interest in acquiring a stake in the Lokichar oil field project in March 2022. However, these preliminary contacts with Tullow did not progress, potentially due to the scale of the project and the required investment. Subsequently, Indian Oil brought in ONGC Videsh, which offered expertise in operating oil fields. Tullow currently holds a 50 per cent stake in the south Lokichar field and is willing to relinquish operatorship in favour of a strategic partner. Total of France and Africa Oil Corporation each hold a 25 per cent stake. The oil fields are situated in blocks 10BB and 13T, and the projected daily oil production is 120,000 barrels. The total estimated oil recovery over the lifespan of the field is 585 million barrels. Similar to the Barmer crude, Lokichar oil is waxy in nature. Both projects involve an 825-kilometre heated pipeline to transport the crude to Lamu for shipping. Dhir was appointed as Tullow CEO in July 2020, shortly after his Africa-focused company, Delonex, secured $600 million in funding from Warburg Pincus, following his departure from Cairn India. Also Read New railway lines to boost connectivity in OdishaPM Modi dedicates Millions to railway projects in Odisha

Infrastructure Transport

06 Aug 2026

Surya Roshni delivers customised lighting for NCRTC RRTS stations

Surya Roshni has supplied customised indoor lighting solutions for 18 elevated stations on the National Capital Region Transport Corporation's (NCRTC) Rapid Rail Transit System (RRTS), strengthening its presence in India's infrastructure lighting segment.The project involved the design and deployment of lighting systems for platforms, concourses, foot overbridges (FOBs) and back-of-house (BOH) areas. According to the company, the luminaires were developed specifically to meet NCRTC's design, operational and performance requirements rather than using standard products.Surya introduced two custo..

Real Estate

06 Aug 2026

Hilton debuts Tapestry Collection brand in Vietnam

Hilton has opened NHAAN Resort & Spa Hoi An, Tapestry Collection by Hilton, marking the debut of the Tapestry Collection brand in Vietnam and expanding its lifestyle hospitality portfolio in Southeast Asia.Located along the Co Co River in Cam Thanh village, the 174-key resort provides access to Hoi An Ancient Town, Cua Dai Beach and the Cam Thanh Nipa Forest. The property has been designed by Vietnamese architect Vo Trong Nghia, incorporating biophilic architecture, locally sourced materials and riverfront landscapes.The resort offers a mix of guest rooms and suites, including family-frien..

Building Material

06 Aug 2026

Electrent expands lithium energy storage system portfolio

Electrent Energy has expanded its lithium-based energy storage portfolio with the launch of the ESS 850 and ESS 1050, targeting compact and maintenance-free power backup solutions for Indian homes.The new systems integrate a Home UPS and a LiFePO4 lithium battery into a single unit, extending the company's product range following the launch of its ESS 1350 and ESS 2500 models.Designed for apartments and smaller homes, the ESS 850 provides up to 1 hour 15 minutes of backup, while the ESS 1050 offers up to 1 hour 45 minutes on a typical 400 W household load. The systems can power essential appli..