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

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..