Africa Oil Corp (AOIFF)

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Not a good sign


Why State’s rushed crude oil export project missed target

Posted on: 27th Jan 2019

The realisation that Kenya will not export its first batch of oil in April has cast the spotlight on a pilot scheme dogged with controversy since the State bulldozed its intention to exportcrude oil without the necessary infrastructure and policies in place.

In a rush to export crude oil, the government overlooked some of the challenges that could have arisen along the way. This, in addition to a two-month standoff between the State and the Turkana community in August last year due to the lack of a Memorandum of Understanding have come back to haunt the government.

Understandably, Tullow Oil that has been leading the exploration and drilling of crude in Northern Kenya, was for a long time not committed to the push by the state to rush the oil process but the state had its way.

The chicken have now come back home to roost with the announcement by Tullow that it has only transported 80,000 barrels of crude to Mombasa. This is just 20 per cent of the required 400,000 barrels of oil that is needed to fill the first ship of crude for the maiden lifting.

Read more at:
https://www.standardmedia.co.ke/article/2001310962/why-state-s-rushed-crude-oil-export-project-missed-target