Kenya Starts Oil Exporting Venture With Stocks Valued At Sh1.3 Bn

By  |  July 26, 2019

Kenya has begun its exporting venture, London-based Tullow Oil has said that it has pumped out 200,000 barrels of crude oil, valued at Sh1.3 billion as it gears up to make the first oil export by September.

 Without mentioning the immediate market, the London-based firm noted that the first exports are intended to test the international market’s reception to Kenya’s low sulphur oil ahead of the commercial production estimated to start in the second half of 2023.

“200,000 barrels of oil have been safely delivered to Mombasa. Tullow expects East Africa’s first export cargo of oil to be sold and lifted in the third quarter of 2019,” the explorer said in the latest trading update.

The British firm, which has exploration and oil fields in the Turkana region has been  moving approximately 600 barrels of oil per day to the Kenya Petroleum Refinery Ltd depot, it was later raised to 2,000 in May, the market value of the oil is based on the international crude oil prices of about $63 (Sh6,500) per barrel.

The oil exploration journey began in 2012 when Tullow discovered commercial oil deposits in the East African nation, which is currently estimated at 750 million barrels

So far, 10 discoveries have been made in the South Lokichar Basin in northwest Kenya with a recoverable resource currently estimated at 560 million barrels of oil, the Ministry of Petroleum said.

The Early Oil Pilot Scheme (EOPS), which was launched in June 2018, is being undertaken by the Kenya joint venture partners comprising of Tullow Oil, Africa Oil and Total Oil and the Kenyan government.

 Nonetheless, the pilot scheme has been hit by numerous challenge including protests from the local community who claim neglect of its infrastructure and security.

It has also faced by the disputes on the revenue-sharing formula between the County and National Government, the success will prove Kenya’s capacity to export crude oil and prepare the global market for commercial production.

Featured Image Courtesy:ogpnetwork.com

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