Kenya to export first crude oil barrels worth Ksh 1.3B by September
The The London-based oil explorer in Kenya, Tullow Oil, has announced that it has pumped out 200,000 barrels of crude oil worth 1.3 billion shillings to Mombasa port ready for exportation.
This will be the first export of the commodity that is set to be executed by September this year as the Oil explorer revealed.
“200,000 barrels of oil have been safely delivered to Mombasa. Tullow expects East Africa’s first export cargo of oil to be sold and lifted in the third quarter of 2019,” Tullow latest updates revealed.
The multinational added that this will be an important opportunity for Kenya to test its international market reception for crude oil with the commercial production set for the second half of 2023.
Currently, the price of a single barrel goes at $63 (Sh6,500) in the international market, which brings the total of the 200,000 barrels to 1.3 billion shillings.
The crude oil transportation commenced in early June 2018, and Tullow had started by moving 600 barrels per day of the crude oil by road to Mombasa but has made improvements since the volume has increased to 2000 barrels per day by the end of May 2019.
Since 2012, Tullow’s successful exploration and appraisal drilling campaigns in Kenya have resulted in the opening of a second new tertiary rift play in the South Lokichar Basin.
Following a full assessment of all the exploration and appraisal data, Tullow estimates that the South Lokichar basin contains the following recoverable resources: 240 – 560 – 1,230 mmbo (1C–2C–3C) from an overall discovered STOIIP of up to 4 billion barrels.
Tullow indicated that the project will be profitable even at low prices. “This represented material and encouraging step forward which gives all parties confidence that the project will be robust at low oil prices.
Revenue from the Turkana oil project will be shared on the basis of 75 percent for all Kenyans through the National Government, 20 percent to the county government and five percent will go to the local community.