President Kenyatta Reveals Sh1.2 Billion Oil Export Deal

The president of Kenya, Uhuru Kenyatta has revealed his country has concluded its first oil export deal this week. The deal was signed for the export of 200,000 barrels of crude oil for Sh1.2 billion (12 million US dollars).

“We are now an oil exporter. Our first deal was concluded this afternoon with 200,000 barrels for 12 million US dollars. I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty,” President Uhuru said.

The country discovered commercial oil reserves in its Lokichar and Tullow basins in 2019. It is estimated that the basins contain an estimated 560 million barrels in the 2C proven and probable oil reserves.

Tullow basin is estimated to produce 60,000 to 100,000 barrels per day of gross production.

Kenyaa was expected to start exporting crude under the Early Oil Pilot Scheme (EOPS) by June this year. However the deal delayed due to what appeared having trucked about half of the amount that will be needed for the first shipment.

In May, the Ministry of Petroleum said about 88,000 barrels of oil had so far been trucked to Mombasa and was targeting to accumulate 200,000 barrels that would form the first export cargo.

The oil that has been ferried to Mombasa was produced in 2015 during an extended well testing exercise.

By end of March, Tullow had shipped all the oil stored in Lokichar and had set up an Early Production Facility, which will produce 2,000 barrels a day.

According to government reports, the oil will also be transported by road to Mombasa for stockpiling before it is exported.

Header Image Credit: borkena.com