Kenya has launched a pilot scheme to export crude oil via Mombasa as part of efforts to capitalize on the country’s oil reserves.
That agreement is a way for the passage of a law on petroleum production, which will enable Tullow Oil, which operates the Kenyan fields, to start shipping oil that has been in storage tanks for a year.
The national government and the regional administration of the northwestern Turkana region agreed last month on revenue sharing that will come into force when production reaches full capacity by 2022.
According to Deputy President William Ruto, the benefits of the project will be shared without leaving anyone behind. He was speaking at the launch of the export initiative which will transport 2,000 barrels to Mombasa by road for shipment each day.
Tullow has hired Wood Group to design the pipeline needed to bring crude from Lokichar’s onshore fields to a port in Lamu along the Indian Ocean coast.
The commercial oil reserves in its Lokichar basin were discovered in 2012 and the 800 km pipeline is due to be built before production starts up in 2021/22.According to the company the cost of the pipeline is about US $1.1bn, with a further US $2.9bn for upstream operations.Tullow added that the Amosing and Ngamia fields in the basin have estimated contingent resources of about 560m barrels.