M a r k e t N e w s

Kenya to export oil earlier than planned by two years

Posted on : Thursday, 25th August 2016

 The government has brought forward the country’s oil production deadline by two years, a move that could see Kenya become a net exporter earlier than 2022.

 
President Uhuru Kenyatta yesterday said the government has “set a path” that will make the country become a key producer and exporter by 2019.
 
This includes expediting the construction of the 891-kilometre (heated) Lokichar–Lamu crude oil pipeline.
 
“We have started and we are not moving back. We want to be at the top of the pile. So, we have set a path and by 2019, Kenya is going to be a major oil producer and exporter,” Kenyatta said at State House yesterday, during a briefing by Tullow Oil.
 
The firm, which first discovered oil in Kenya in 2012, confirmed that it will start oil production in March next year.
 
The President issued a directive to expedite exportation of Kenya’s early oil, which is expected in June 2017.
 
Tullow’s chief operating officer Paul McDade said his company has made good progress and will be ready to start oil exportation in June 2017.
 
The oil will be transported by road from Lokichar in Turkana county to Mombasa where it will be exported as crude.
 
The initial plan is to produce 2,000 barrels per day, McDane said, adding that Tullow Oil is committed to aggressive exploration that will lead to drilling of at least eight more wells in north Lokichar to scale up production.
 
“This will take the mean recoverable resources to over a billion barrels from the current estimated 750 million barrels,” McDade said.
 
Energy Cabinet Secretary Charles Keter said the construction of the Lokichar–Lamu pipeline is still on course. The ministry commenced the search for a company for a Front End Engineering Design of the proposed $2.1 billion (Sh212.9billion) pipeline in June. It is expected to be complete by 2020.
 
Yesterday, Keter said the government has concluded a Joint Development Agreement for development of the pipeline with its partners – Tullow Oil, African Oil and Maersk Oil.

Source : allafrica.com
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