Kenya to export first batch of crude oil by July 2019

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Kenya is likely to make the first export of crude oil between July and September this year.

This is according to Tullow Oil, which says 80,000 barrels of crude oil have so far been trucked from Lokichar to Mombasa.

The firm hopes to increase the volume of crude oil being trucked from Lokichar to Mombasa from the current 600 barrels to 2,000 barrels after securing approval from the Energy and Petroleum Authority.

In June last year, President Uhuru Kenyatta was in Turkana County to flag off the first consignment of crude oil from Lokichar to Mombasa destined for export.

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Since then, Tullow Oil has been ferrying 600 barrels per day, albeit the interruption that hit the process several weeks after the process was started.

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In its latest trading update, Tullow Oil says so far 80,000 barrels of crude oil has been trucked to Mombasa where it is being stored ahead of export. The firm is optimistic that the volume of crude oil being trucked would be steadily increased soon.

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In a statement, Tullow Oil CEO Paul Mcdade, says: “Following receipt of Regulatory Authority approval, which is expected shortly, production will be increased to 2,000 barrels of oil per day, with the first export cargo expected in the third quarter of 2019.

”Tullow Oil says even though it targets to make a Final Investment Decision in Kenya by the end of this year, this remains an ambitious target and is hinged on other factors such as progress on the proposed heated crude oil pipeline.

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Mcdade notes that: “The Government of Kenya, via the National Land Commission, has gazetted the land required for the upstream development in Turkana and, so far, approximately two-thirds of the pipeline.

Discussions with Government regarding key commercial agreements are making steady progress.

A late 2019 Final Investment Decision remains contingent on these key Government of Kenya deliverables.

 

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