Cabinet approves plan to develop and commercialise crude oil

The Special Cabinet meeting chaired by President Uhuru Kenyatta on Friday approved the plan for development and commercialisation of crude oil, and early oil production.

This follows Kenya’s success in exploration for oil in Turkana County, where significant deposits were discovered by Tullow Oil in 2012. “The Country is now getting ready to full commercial exploitation. In this regard, the country is in the process of establishing an enabling commercial and infrastructure arrangement that will facilitate the creation of an international market for Kenya’s crude oil,” noted a statement from State House.

“Under this arrangement, the country will commence with the production of 2000–4000 barrels per day that will be transported to Mombasa for export. For this to happen, the Eldoret (Leseru)–Lokichar Road is being upgraded at a cost of KSh3.2 billion.”

Also to be replaced under this plan is the Kainuk Bridge to allow for larger and heavier trucks to transport the crude oil. It is envisaged the crude oil will be transported by rail and road from Eldoret to Mombasa, from where it will be exported as crude.

Cabinet also approved the development of the Lokichar to Lamu Crude Pipeline which will be the main evacuation or transportation route for the crude oil from Kenya in the future.

Others approved during the session included Ministerial Budget Priorities for the Financial year 2016/2017 and directed ministries to commence implementation immediately.

The Head of State was also briefed on the preparations for the forthcoming TICAD 6 Conference scheduled to take place in Nairobi later this month.

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