• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 13 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 7 hours Here's your favourite girl, Tom!
  • 17 mins Canada Election Deadlock?
  • 24 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 36 mins Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 7 hours IMO 2020:
  • 1 day Australian Hydroelectric Plant Cost Overruns
  • 21 hours China's Blueprint For Global Power
  • 17 hours Nigeria Demands $62B from Oil Majors
  • 1 day Ford Planning Huge North American Charging Network
  • 17 hours Deepwater GOM Project Claims Industry First
Are U.S. Sanctions Killing Crude?

Are U.S. Sanctions Killing Crude?

U.S. sanctions on Venezuela and…

Two Dead Following ISIS Attack On Iraqi Oil Field

Two Dead Following ISIS Attack On Iraqi Oil Field

Islamic State militants have attacked…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Kenya Delays Much-Awaited First Oil By Three Months

Kenya

First oil from Kenya will arrive in international markets three months later than projected, according to an announcement from the nation’s energy minister on Thursday.

Minister Charles Keter said the government chose to postpone the shipment as it negotiates better revenue-sharing agreements with local communities. The news comes after a series of attacks on workers who were preparing roads that will be used to truck the oil to coastal areas.

"We do not want to start the export without having a clear picture of revenue sharing, we have to wait for the Senate to be formed, hopefully we will start the export after the election and when we have a Senate to approve the bill," Keter said.

The original contracts said local communities would get five percent of oil profits, while county governments would get 20 percent and the federal government would get the rest. But locals now insist on a ten percent share of the new revenue stream.

U.K.-based Tullow struck oil in Kenya in March 2012. Since then, Kenya’s estimated reserves have climbed to 750 million barrels. First oil, transported 1,000 kilometers over land from Turkana to Mombasa, was expected next month, but upgrades on the existing roads have been behind schedule due to the attacks and poor management.

An 855-km pipeline will go online by the year 2020, bringing crude to the Indian Ocean for export. At that point, production is due to reach 100,000 barrels per day.

Last August, Kenya and neighboring Uganda failed to agree on a single pipeline to pump crude from both countries to the coast. Uganda chose a different route for its crude, and now there will be two pipelines running to East Africa ports.

According to estimates, the breakeven price of crude for Kenya is US$45-49 a barrel, coming in slightly higher than earlier estimates of US$37-42 a barrel. This change came about due to the cost of the pipeline that will transport crude from South Lokichar to the coast.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play