Six years after British firm Tullow Oil announced that it had
struck oil in Kenya, four tankers, each carrying 156 barrels arrived in
Mombasa on Thursday. It is East Africa’s first commercial oil.
The
tankers arrived four days after President Uhuru Kenyatta flagged them
off from the Lokichar oilfields in Turkana County, 1,025 km from
Mombasa.
The trucks were received by Petroleum and
Mining chief administrative secretary John Mosonik and other government
officials at the Kenya Petroleum Refinery Ltd plant in Changamwe.
Transportation of the early oil by road will cost $15 million. It takes each truck 10 days to complete a round trip.
At
least 2,000 barrels of crude are expected to be transported every day
from the Lokichar oilfields to the refinery, where they will be stored.
The Petroleum and Mining Ministry says export will begin once 400,000 barrels arrive at the facility.
Commercial production
After
the launch of the Early Oil Pilot Scheme (EOPS), Kenya now says it will
increase investment in the sector in readiness for commercial
production, expected to begin around 2021/22.
“My government will focus on the development of our oil and gas sectors for the betterment of the economy and people,” said President Kenyatta as he flagged off the trucks on June 3.
“My government will focus on the development of our oil and gas sectors for the betterment of the economy and people,” said President Kenyatta as he flagged off the trucks on June 3.
Tullow Oil, which runs the wells,
says it is producing about 500 barrels per day from the five wells in
the mini-production stage, but the capacity will rise to 100,000
barrels per day in the full-field development stage.
The
anticipated growth in production largely depends on when the $1.1
billion 892km heated crude oil pipeline, linking the Lokichar oilfields
and the upcoming Lamu Port, will be constructed.
“The
pipeline is critical infrastructure to this project. We expect to award
the contract not later than 2019,” Tullow Oil Group CEO Paul McDade told
The EastAfrican.
The pipeline is being designed by London-listed firm Wood Group Plc, and construction is expected to take three years.
Unloading bays
At
the KPRL facility, engineers have modified the depot by creating two
truck unloading bays, a steam boiler for line heating and reheating the
crude oil trucks, and insulated a receiving tank with a capacity of
90,000 barrels.
Kenya Pipeline Company has invested Ksh1.8 billion in improving the facility.
Tullow Oil says it hopes to fetch good prices on the international market.
Kenya’s
crude oil is categorised as Brent crude, which is classified as light
and sweet, meaning it has low sulphur content at below 0.5 per cent.
Ordinarily, this fetches higher prices in the international market due
to its refined form that produces high-value products — petrol and
diesel.
Tullow Oil, with joint venture partners Total
SA of France and Africa Oil Corporation of Canada, have discovered 560
million barrels of crude resources in South Lokichar basin, which
straddles block 10BB and 13T.
The Turkana community, which is to be allocated 5 per cent of the oil proceeds, hopes that their livelihood will be uplifted.
“The
proceeds should help us get access to clean water and food, and build
schools and roads for our children,” said Peter Kamais, a resident of
the Turkana basin.
Additional reporting by Samuel Kazungu.
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