Trade

Kenya to join the league to oil exporting countries by June, 2017

Friday, 12 August 2016 14:11

As part of efforts to join the league of oil exporting countries in 2017, the Cabinet has approved a commercialization plan proposed by the Kenyan Ministry of Energy.
Due to this, the country now has hopes of commencing the exportation of 4,000 barrels of crude oil per day by June 2017.

This crude will be transported from the Lokichar basin oil fields to Eldoret by road, from where it will then be loaded onto a train or trucked to Mombasa.
Kenya could generate a daily revenue $82,000 and $164 million as a barrel of crude oil is currently at $41.

The crude oil will be refined at the Kenya Petroleum Refinery, which was obtained by the government from Essar Energy in June at a cost of $5 million.
As a matter of fact, the restoration of heating tanks in preparation for the first line of refining has begun at the Mombasa-based refinery, which is now under the Kenya Pipeline Company (KPC).

The Kenyan government three weeks ago, carried out the first test of transporting crude oil after two trucks transported the first samples from Lokichar via Eldoret to Mombasa.
The Cabinet has said that it is improving the Eldoret-Leseru-Lokichar road at a cost of Sh3.2 billion and it is also renovating the Kainuk Bridge in Turkana County to allow big and heavier trucks transport the oil from the Lokichar basin to Eldoret. It has also approved the construction of Kenya's pipeline from Lokichar to Lamu.

Kenya became part of the oil league in 2012, when African Oil and its partner Tullow Oil first discovered oil in the Lokichar basin, with reserves estimated at 600 million barrels. In April, the country decided to build its own

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