"This represents less than eight per cent of the gross expenditure – reasonable by industry standards," Tullow Oil Kenya Managing Director Martin Mbogo said in a statement.

Mr Mbogo said their partners and the Kenyan government will work together to agree on a final figure to be approved for compensation when Kenya starts commercial oil production.

The firm confirmed that it has called force majeure on its licences in northern Kenya, which means that it is unable to continue with its contractual obligation in Turkana oil fields.

Tullow Oil is the operating partner on Blocks 10BB and 13T in Kenya

A force majeure notice is declared when a company is unable to perform its obligations in a contract due to unforeseen events, such as floods and disasters.

"Tullow and its partners have called force majeure because of the effect of restrictions caused by the coronavirus pandemic on Tullow's work programme and recent tax changes," the firm said.