Kenya exports its first crude oil at Ksh.1.2B


Kenya exports its first crude oil at Ksh.1.2B
Tanker truck ready to ferry Kenya's crude oil to Mombasa, Kenya June 7, 2018. Photo/REUTERS/Joseph Okanga

President Uhuru Kenyatta on Thursday announced that Kenya has exported its first crude oil.

Speaking when he chaired the cabinet, Kenyatta said the crude oil had been sold in a deal that has seen the country earn Ksh.1.2 billion.

“We are now an oil exporter. Our first deal was concluded this afternoon with 200,000 barrels at a price of 12 million US dollars,” said President Kenyatta.

The crude is currently being stored at the partially rehabilitated Kenya Petroleum Refineries Limited in Changamwe, Mombasa. The consignment has been delivered by trucks since July last year under the early oil project scheme.

“So, I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty,” said Kenyatta.

The news is also expected to create excitement in the Lokichar oil fields where Tulllow Oil and its joint partners continue to explore more blocks for oil.

Kenya discovered its first oil deposits in 2012 and since then, explorations have continued in the Lake Turkana Basin with more deposits being reported.

In previous media reports, Tullow Oil estimated some 560 million barrels in probable reserves.

Tullow further indicated that this would translate to 60,000 to 100,000 barrels per day of gross production, which is said to be insufficient to warrant the construction of a refinery locally, hence the export plans.

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Story By Faizal Ahmed
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