By O’Brien Kimani
The government has suspended transportation of crude oil from Turkana oil fields until a bill detailing how revenue from the commodity will be shared is enacted into law.
Energy Cabinet Secretary Charles Keter says the government now plans to start the evacuation of the oil in September if the Senate debates and passes the Petroleum Exploration and Production Bill.
The country was hoping to transport 2,000 barrels of crude oil daily to Mombasa through trucks, as the country awaits construction of a 200 billion shillings pipeline from Lokichar to the Port of Mombasa.
However, after a number of setbacks, the government has finally suspended the plan.
Tullow Oil says the cancellation will not affect its operations.
Last month Prime Fuels Kenya, Multiple Hauliers and Oilfield Movers were awarded a 1.5 billion shillings tender to transport the crude oil to Mombasa under the Early Oil Pilot Scheme.
Energy Cabinet Secretary Alfred Keter says the oil shipment is now subject to the Senate passing the Petroleum Exploration and Production Bill that determines how revenue from the commodity should be shared.
Construction of key infrastructure to oil fields is still under development, while an Environmental Impact Assessment on the planned pipeline starts next month.
Tullow oil says the delays will not affect crude oil exploration and production.
The government is also in talks with Lake Turkana Wind Power Project to find a solution to the delayed construction of a transmission line to evacuate power from the project.