Oil needs to rebound to $75 to make Kenya project worthwhile – Tullow

Oil prices would probably need to rise to about $75 to $85 a barrel from around $60 currently for Tullow Oil and Africa Oil to go ahead with their Kenyan project, the chief executive of Africa Oil said.CEO Keith Hill told the Reuters Africa Investment Summit he was confident that crude prices would recover to around those levels long before a final investment decision, due by the end of 2016, is made.”We still need oil prices to recover probably above today’s levels to pull the trigger on the project sanction,” he said. “I am quite confident that oil prices will recover by the end of the year.”Hill said a level of $75 to $85 would be “just perfect for us”, saying that level “makes us very cost competitive and many of our competitors not,” pointing to more expensive shale production or deep sea oil developments.

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