Production

Kenya aims for small-scale crude oil production by 2017

Thursday, 10 March 2016 16:54

Kenya’s Petroleum Minister Charles Keter has announced that the country plans to commence small-scale crude oil production from fields located northwest of Kenya in 2017.

According to him, works have commenced on the road and rail infrastructure which will be used to transport it.

He said the country is moving forward with plans to commence small scale production by 2017, and roads linking the oilfields to Eldoret in the west, are currently being amended, together with a railway from Eldoret to the port city of Mombasa.

The production which we have talked with Tullow, with oil prices at $30, they will be able to produce about 2,000 barrels per day. But they are not going to go into full-scale production for commercialization,” Keter said.

Tullow had in 2014 announced that production could commence in 2016, but will at first be transported by road and rail, Reuters reports.

The Presidents of Tanzania and Uganda last week said that the two countries are planning to construct a pipeline from Ugandan oil fields to the coast of Tanzania, which could affect Kenya’s pipeline plans.

There are considerations of cost and security. The route through Tanzania could be less expensive. As far as the security issue is concerned the northern route via Kenya is not far from Somalia and there is the risk of attacks from terrorist groups coming from this country, which is a matter of concern. On the other hand a pipeline through Kenya would allow Tullow Oil, part of the consortium developing discoveries in Uganda with Total and CNOOC, to develop its own discoveries in Kenya,” Francis Perrin the chairman of Strategy and Energy Policy and the Editor of Arab Oil & Gas told Agence Ecofin.

However, Keter noted that the best pipeline route is still being discussed and the final conclusion will be announced at the next meeting of presidents of the East African Community.

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