Tullow Oil has announced it expects to produce oil for the first time in Kenya by 2020.

The announcement made through its 2015 half year report puts to rest speculations that had earlier suggested Kenya would start producing oil by 2017.

In the report released on Wednesday, the multinational exploration company says a sanction decision for oil production is expected by the end of 2016, and that the first production will happen “approximately three and a half years post project sanction”.

The company has also allocated $100 million (Sh10.2 billion) for exploration and appraisal drilling in Kenya.

For its pre-development activities, Tullow has set aside $225 million (Sh23 billion) to be used in Kenya and Uganda. The two countries are working together towards sharing an oil exportation pipeline.

READ: Oil pipeline design out as Kenya eyes exports in 3 years