• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Could Venezuela become a net oil importer?
  • 1 hour Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 8 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 13 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Gazprom Exports to EU Hit Record
  • 8 hours Why is permian oil "locked in" when refineries abound?
  • 6 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 4 hours Oil Buyers Club
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Oil prices going down
  • 2 hours Saudi Arabia turns to solar
  • 1 day Teapots Cut U.S. Oil Shipments
  • 21 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours EVs Could Help Coal Demand
  • 14 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Australia Looks To Tackle Its Looming Gas Shortage

Australia Looks To Tackle Its Looming Gas Shortage

The world’s soon-to-be top liquefied…

Canada’s Oil Crisis Is Far From Over

Canada’s Oil Crisis Is Far From Over

While the Canadian government has…

Kenya Says It’s Ready For 70,000 Barrels Of Pilot Oil Exports

Tullow oil

Kenya has stored 70,000 barrels of oil in the north of the country, waiting to be trucked to the Mombasa port for pilot exports, but revenue sharing talks are still ongoing and currently impeding the start of the so-called Early Oil Pilot Scheme (EOPS) until a pipeline is built to ship commercial quantities of oil to the coast.

Although the 70,000 barrels of oil are stored, the pilot export project is being delayed because Kenya has yet to pass a bill regulating the oil revenue sharing between the federal government, the local governments, and the local communities where oil will be pumped.

Commercial quantities of crude oil in Kenya were discovered in 2012 in the South Lokichar Basin in the north. Tullow Oil, which discovered the resources, has continued its exploration and appraisal drilling campaigns in Kenya.

At the end of October 2017, Kenya’s government signed a Joint Development Study Agreement (JDA) with Tullow Oil, Africa Oil, and Maersk Oil for a proposed Lokichar-Lamu crude oil pipeline between the Turkana county and the Lamu port on the coast.

But until the pipeline allows for larger-scale commercial oil exports, Kenya has this early pilot scheme to test the export of small quantities.

“We are ready to pilot, we are just waiting for the Bill because the oil is already in the tanks,” local media quoted Principal Secretary Andrew Kamau as saying on Friday.

Related: U.S. Oil Rig Count Flat As Prices Stabilize

The early pilot exports will be followed by commercial production and exports once the pipeline is completed in 2021, Kamau said.

Tullow Oil and its joint venture partners have proposed to the Government of Kenya that the Amosing and Ngamia fields should be developed as the Foundation Stage of the South Lokichar development. This stage would include a 60,000 to 80,000 bopd Central Processing Facility (CPF) and an export pipeline to Lamu.

In its trading update in late April, Tullow Oil said that “following the start of injection and production testing, oil produced is initially being stored until all necessary consents and approvals are granted for the transfer of crude oil to Mombasa by road. Discussions between local and national Government are on-going with expectations of being able to commence the trucking of oil in the coming months.”

By Tsvetana Paraskova 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