• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 7 mins WTI @ 67.50, charts show $62.50 next
  • 9 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 10 hours Mike Shellman's musings on "Cartoon of the Week"
  • 5 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 15 hours Venezuela set to raise gasoline prices to international levels.
  • 5 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 9 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 15 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 22 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 21 hours Corporations Are Buying More Renewables Than Ever
  • 11 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 12 hours France Will Close All Coal Fired Power Stations By 2021
What Would A Hard Brexit Mean For British Oil?

What Would A Hard Brexit Mean For British Oil?

Despite nearly 14 months of…

Nord Stream 2 Clears Another Hurdle

Nord Stream 2 Clears Another Hurdle

Russia’s controversial Nord Stream 2…

Kenya Starts Pumping Oil

Tullow

The Kenyan government said it has approved a plan for the production of between 2,000 and 4,000 barrels of crude daily.

The plan includes an upgrade of road infrastructure to transport the crude to Kenya’s largest port in Mombasa, as well as the construction of a pipeline from the oilfields in northern Kenya to Lamu on the coast. This city is set to become Kenya’s main oil export terminal in the future.

Kenya’s oil deposits are located in the northwestern part of the country, most notable among them the South Lokichar field, which is being explored by a joint venture between Tullow Oil, Maersk Oil, and local Africa Oil. Last month the three companies said they were going to restart drilling at the field in the last quarter of this year, planning four wells initially and later possibly expanding the number to eight. By the end of next year, South Lokichar should produce some 2,000 bpd of crude.

According to estimates from KPMG, the breakeven price of crude for Kenya is US$45-49 a barrel. This is a bit more than previous estimates of US$37-42 a barrel, and the revision was prompted by the cost of the pipeline that will transport crude from South Lokichar to the coast.

This pipeline will run over 855 km and will cost Kenya US$2.1 billion. Oil transportation costs will average US$12.94 a barrel.

Things could have been different if Kenya and neighboring Uganda had agreed on one single pipeline to pump crude from both countries to the coast. Uganda, however, chose a different route for its crude, and now there will be two pipelines running from the oil rich South Lokichar and the Albertine Basin in Uganda to the Kenyan and Tanzanian coast – Uganda will be using Tanzania’s Tanga port to export its crude.

By Irina Slav 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