Crude oil ferrying from Lokichar to Mombasa to start Sunday

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Kenya discovered commercially viable crude oil in Turkana County seven years ago.
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A convoy of four trucks will from this Sunday ferry crude oil from Lokichar to Mombasa in a journey that is expected to take ten days under the Early Oil Pilot Scheme.

Each of the trucks will carry 150 barrels of crude oil that would be stored at the Kenya Petroleum Refineries Limited stores to accumulate to volumes that can be exported.

Since last year, the Kenya Joint Venture Partners comprising Tullow Oil, Africa Oil Corporation and Total have been producing crude oil in Turkana County and storing it awaiting an agreement on the revenue sharing formula which was agreed on early this month.

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Four trucks each carrying 150 barrels of crude oil will hit the road via the Lockichar–Kitale-Eldoret-Nairobi-Mombasa in a journey expected to take 10 days per trip.

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The crude oil will be stored at the Kenya Petroleum Refinery Limited to accumulate sufficient volumes to be exported.

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So far, there are about 80,000 barrels of crude oil stored in Lokicha, with the Kenya Joint Venture Partners targeting to produce between 60,000 and 100,000 barrels of crude oil.

It had initially been projected that it would cost about 200 billion shillings to construct the heated pipeline between Lamu and Lokichar.

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This has however been revised down to 110 billion shillings with the government currently engaging potential investors to construct the heated pipeline.

Tullow Oil that has expressed interest in constructing the heated pipeline expects to make the Final Investment Decision on the pipeline next year.

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