Early oil export set for May

The government will resume plans for small scale oil exports in May after suspending it in June last year.

The state department of petroleum says the initiative will take off in the next two months aimed at testing the receptivity of the Turkana crude oil in the global market, pending construction of infrastructure for huge volume exports.

The early oil pilot scheme (EOPS) will set the stage for export of crude oil to the international market for sampling and marketing as crude oil exploration continues in Lokichar.

Kenya is yet to ascertain the commercial viability of its crude oil.

Petroleum principal secretary Andrew Kamau said the road network from Lokichar to Kitale had been upgraded to facilitate transport.

Kenya plans to export between 2,000 and 4,000 barrels of oil daily by trucks to be stored at the refurbished Kenya Petroleum Refinery Limited’s storage tanks in Mombasa port city, pending export.

Mr Kamau however said passing of the Petroleum Bill still holds the key to accelerating the project.

“We are hoping the bill will come to the house (Senate) in the next couple of days. Once that done the works in Turkana are ongoing, the roads are almost done, the refinery is ready to receive the crude. So all systems are a go,” Mr Kamau said.

Tullow already has 70,000 barrels of crude stored in Lokichar in readiness for transportation to Mombasa port by lorries.

The Petroleum Bill has remained contentious on the issue of revenue share of proceeds from crude oil, with Turkana County pushing for a larger share for local communities and the county.