The Government of Kenya will go ahead with its plans to build an export pipeline as the Ministry of Energy estimate that Kenya’s oil resources will almost double to 1 billion barrels as drilling increases across different parts of the country. Tullow Oil and Africa Oil Corp. have discovered an estimate of 600 million barrels of oil in the South Lokichar Basin since announcing the country’s first crude find in March 2012. The discovery has spurred the East African nation to accelerate infrastructure growth plans, including construction of an oil pipeline that will link Uganda to a planned port in the Kenyan coastal town of Lamu.
Preliminary data acquired from Northern Kenya indicates that oil resources will rise significantly with increased drilling.
Meanwhile, Barakat Exploration has filed a law suit against Canadian Taipan Resource firm at the Nairobi High Court. Barakat is accusing the Canadian firm of faulting to pay consultation fees with relation to a Kenyan oil exploration deal.
Taipan Resources Inc. was to pay for services offered by Barakat Exploration firm after negotiating a KES500 million product sharing deal on oil exploration with the government. Later on, Taipan merged with Lion Petroleum and the two equally shared the exploration cost of two oil blocks, 1 and 2B, in North Eastern Kenya.
Barakat alleges that it carried out its agreed duties but Taipan failed to pay the KES50 million it was supposed to pay for the services rendered. The ruling is set for October 1, 2014