Pricewaterhouse Coopers(PwC) have been selected by Kenya Pipeline Corporation to be their lead adviser on its proposed purchase of Kenya Petroleum Refineries Ltd, the only crude-processing company in East Africa’s largest economy.
A group of firms will conduct a full scale due diligence on KPRL and its findings will be released before January 2017. Kenya targets to produce between 200,000 to 250,000 barrels of crude oil per day in the future as the government says that it would be an oil exporter to other countries.
Tullow and its partners (Maersk Oil and Africa Oil) have approved the Final Investment Decision (FID) for the EOPS. To this end, the first phase of the Early Oil Production Scheme (EAOPS) intends to demonstrate Kenya’s oil sector development.
The scheme will utilize the existing wells in Turkana County to produce 2,000 barrels of oil per day. The oil will be transported to Mombasa by road, an important step towards full field development of the oil discoveries in blocks 10BB and 13T in Turkana County.
Ministry of Energy and Petroleum is working closely with the Transport ministry to ensure that roads leading to the oil fields in Lokichar are finalized for smooth transport facilitation.
Since oil was first discovered in Kenya at Ngamia 1 in 2012, 30 wells have been drilled in the search for more oil, with an investment of close to Ksh150 billion in the sector.
Recently, AfDB East Africa Regional Director, Gabriel Negatu affirmed its commitment to support East Africa’s pipeline construction and oil production and invited more private investment in financing the pipelines. Negatu said “Nobody has ever, ever lost money financing pipelines” and if there is oil flowing, “it’s generally viable.”