Kenya: Cepsa to pull out of Block 12B

Spain’s Cepsa is pulling out of Block 12B ahead of a well planned for next year, while Tullow Oil and Swala Energy have agreed to enter the first additional exploration period on the licence. Swala said Cepsa, which only farmed into the western Kenya block in March, had opted to withdraw from the production-sharing contract (PSC) “saying they would have preferred more time to review the data before having to commit to a drill-or-drop decision”. Under the terms of the PSC, the joint venture is obliged to acquire 300km2 of 3D seismic data or drill one exploratory well during the first additional period, which covers years three and four of the licence.