[Source: Business Daily, by Brian Ngugi]
British oil exploration company Tullow will start small-scale crude oil production from the South Lokichar oil fields in Turkana next week.
This comes after obtaining a long-awaited regulatory approvals from the National Environment Management Authority (Nema).
Petroleum Principal Secretary Andrew Kamau said Friday the UK multinational expects to start moving 2,000 barrels of oil per day, charting way for Kenya’s commercial exploitation of the commodity in the coming weeks after the environment assessment licence was signed.
This will pave way for the shipment of the first cargo of South Lokichar crude from June, ahead of a major crude production in 2022.
So far, Mr Kamau said, over 80,000 barrels of oil have been transported to the Port of Mombasa in anticipation of shipping a maiden export cargo.
The first shipload of about 200,000 barrels of crude oil will be sold to a refinery that offers the highest price, Mr Kamau said.
He however noted it is “still early days” to identify potential buyers.
Tullow Oil officials, together with Kenyan government officials, had earlier in March began meeting with possible buyers for its crude under this scheme as the country prepares to join a league of oil exporters in sub-Saharan Africa.
[Full article: Business Daily, by Brian Ngugi]
