Kenya is set to start exporting oil on a trial basis next month. This is after British oil explorer Tullow Oil, Africa Oil and Maersk Oil yesterday signed a production agreement with the Government of Kenya, paving way for the three joint-venture partners to proceed with the Early Oil Pilot Scheme by next month.
“With this agreement, which covers legal and technical issues, we will next month start moving oil from Lokichar to Mombasa for exports,” Energy secretary Charles Keter said.
It is expected that between 2,000 and 4,000 barrels of oil will be moved per day using flat-bed trucks mounted with oil tanktainers (130 barrels) and trains in the absence of a pipeline.
The early oil programme is expected to take place between now and 2020. It is expected to gauge the reaction of international markets to Kenya’s crude oil.
By moving crude oil for over 1,000 kilometres by road, the country will have developed one of the longest routes for moving the product in the world.
After 2020, the Government expects to have a pipeline in place between Turkana and Lamu that will then be used to export larger volumes of crude.
Kenya expects to embark on large-scale production in 2020 and will export the oil through the 865-kilometre pipeline linking the Turkana oilfields to Lamu port to be built at a cost of Sh210 billion.
This means that Kenya, which is East Africa’s largest economy, will be able to pump out about 100,000 barrels a day.