Kenya tests oil pilot scheme

Kenya tests oil pilot scheme

At the beginning of this month, Kenya sent its first trucks moving crude from its northern region of Turkana to the port of Mombasa as part of the country’s pilot oil export scheme.

Kenya had 700,000 barrels of oil stores in Turkana in the middle of May but was unable to transport it to the ports in Mombasa as a result of ongoing talks over revenue shares.

However, a week later an agreement had been reached between the Kenyan government and the local lawmakers of Turkana, which will see 75% of revenue of oil production and exports go to the government, 20% to the Turkana local government and 5% to the local community.

Oil discoveries were first made in the region in 2012 by Turkana Oil which has continued its exploration efforts and appraisal drilling campaigns in Kenya.

The Eastern African country’s government has signed a Joint Development Study Agreement with Tullow Oil, Africa Oil, and Maersk Oil for a proposed Lokichar-Lamu crude oil pipeline that will transport oil from the region to the Lamu port on the coast and will allow large scale commercial exports.

The Early Oil Pilot Scheme will transport 2,000 bpd by road to Mombasa for eventual shipment, with President Uhuru Kenyatta stating that he hopes oil will become a major contributor to the Kenyan economy.

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