Tullow Oil to start shipments in December


By O’Brien Kimani

KBC Radio_KICD Timetable

Tullow oil plans to start export of oil by road in the fourth quarter of this year.

The company has announced that critical infrastructure along the transport route is almost complete with plans to start the early oil Pilot Scheme expected to begin in December this year.

The early oil Pilot Scheme is a joint venture between the oil explorer and the government to truck 2000 barrels of oil by road to the port of Mombasa.

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Kenya was planning to start oil export early this month in a joint venture between British oil explorer Tullow oil and the ministry of energy.

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The deal reached in March this year would have seen 2000 barrels of oil trucked from Turkana by road to the port of Mombasa for the international market.

However the road leading to the oil fields was not complete on time, throwing the whole plan into disarray.

On Wednesday Tullow oil said the planned evacuation of oil will start in December with completion of critical infrastructure along the transport corridor.

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The oil explorer further says it plans to start drilling three wells this later this year.

The three wells in Ekales, Ngamia 11 and Etete have also shown significant deposit of oil and evaluation of the finding is being evaluated.

The company says exploration and appraisal campaign in northern Kenya continues with two discoveries made so far.

The first discovery was made in January 2017 at Erut-1, which proved that oil has migrated to the northern limit of the South Lokichar basin.

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The second was made in May 2017 at Emekuya-1 which encountered significant oil sands the company has said.

In the six months to June this year Tullow oil Plc which is the mother company of Tullow oil Kenya reported an operating loss of 31 billion shillings according to the company’s half year results.

The loss was in part due to 42 billion shillings in impairment charge relating to charges on property, plant, and equipment.

Also read https://www.kbc.co.ke/business/kenya-to-start-exporting-oil-in-june-2017/



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