Engineers, consultants, logistics companies, financial institutions and IT companies are set to reap huge from Turkana oil export plan. Government also which has been earning about KES503m a year in surface fees is a beneficiary too.
This development comes as Kenya plans for its first barrel set to hit storage tanks in Mombasa from Turkana by April. One tanker will carry up to 200 barrels of oil or 31,800 litres meaning 10 trucks will be leaving Lokichar everyday for the port of Mombasa.
Tullow Oil recently signed a production agreement with the government for the first consignment of crude oil from Turkana fields to be transported to Mombasa in readiness for export. The pact draws the roadmap for Kenya’s early oil export plan that is expected to pump out 2,000 barrels per day for transportation by trucks and storage at the defunct Kenya Petroleum Refinery’s storage tanks in Mombasa. Also, the British explorer is expected to pick the transporter(s) of the crude by end of March.
Tullow first struck Kenya’s oil fields in 2012 in Turkana at Ngamia-1 well. This well encountered over 200 metres of net oil pay. This was later followed by a series of further exploration activities in South Lokichar Basin at the Ngamia, Twiga, Etuko, Ekales-1, Agete, Amosing, Ewoi, Ekunyuk, Etom oil accumulations and most recently at Erut.
This estimated the country’s oil reserves at 750 million barrels. Commercial production of the reserves is scheduled to start in 2020 though the small-scale oil exports starting June are intended to test the receptivity of the Kenyan crude in the global market. To date, Kenya has licensed 44 out of its 63 exploration oil blocks.