Africa Oil Corp (AOIFF)

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Tullow changes Kenya’s oil exports date to 2024

Wednesday, August 21, 2019 9:03 By EDWIN OKOTH

British oil explorer Tullow Oil has set 2024 as the earliest date Kenya can expect to start reaping gains from the Turkana oil.

Tuesday’s announcement has dampened hopes for an economic boost that was expected to start in 2022.

The petroleum firm said it will take at least four years to reach the commercial production stage when Kenya is expected to start earning about Sh150 billion from crude oil exports every year.

Kenya is yet to sign with Tullow Oil and its partners the critical Final Investment Decision (FID), without which financiers cannot commit to fund drilling, pipeline and other infrastructure projects required to exploit the oil.

Tullow Oil Kenya managing director Martin Mbogo said the firm will continue with its non-commercial Early Oil Pilot Scheme in the meantime to gather market and production data ahead of the large-scale production.

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The first 200,000 barrels will leave for China in about one week after Kenya sold its first crude to Beijing-based ChemChina Petrochemical Ltd.

The Chinese State-owned oil multinational is said to have won the bid to buy the Kenyan crude where 20 others had expressed initial interest and seven others submitted bids in February 2017. The country expects to earn $12 million (about Sh1.2 billion) from selling the crude oil although all the amount is expected to be swallowed in the costs of extracting and transporting the product, according to Petroleum principal secretary Andrew Kamau.

Read more at:
https://www.businessdailyafrica.com/news/Tullow-changes-Kenya-exports-date-to-2024/539546-5243304-12912ye/index.html