Tullow in search for crude oil transporters
British oil exploration firm Tullow Oil has begun the search for transportation firms to move crude oil from the oil fields in Turkana to Mombasa.
This is part of the early oil pilot scheme that is expected to commence in June 2017 to produce two thousand barrels of crude oil per year.
After the failure of a joint pipeline deal with Uganda, the government announced plans to transport the crude oil via road and rail covering a distance of over a thousand kilometers.
The plan is expected to open new business opportunities for trucking companies expected to make millions from the project.
“The scope of work entails trucking of crude oil in insulated containers (tanktainers) to be provided by the company from an early oil production facility located near Lokichar in Turkana County to storage facilities at the Kenya Petroleum Refineries in Changamwe, Mombasa,” Tullow said in an expression of interest in the dailies.
Kenyan crude oil is considered waxy and expected to be kept in a heated state during transportation.
Tullow has at the same time called for an expression of interest from companies to lease insulated containers to be used in the transportation of the crude oil.
The containers are expected to meet 100 ISO T11 standards with a minimum fluid capacity of 25,000 liters.
The Ministry of Transport and Infrastructure in conjunction with Kenya National Highway Authority are building the road from Lokichar to Webuye and Kitale.
The A1 highway will help move trucks and containers to Mombasa.
The Kenya Civil Society Platform on Oil and Gas (KCSPOG) has however raised objection to the government’s plan to transport the crude oil by road arguing it does not make economic sense.
According to KCPOG, the country stands to lose an estimated Sh3 billion from the early oil trade.
The government has however maintained that Kenya is unlikely to make money from the early oil project with crude oil prices still relatively low.
Petroleum Principal Secretary Andrew Kamau said crude oil prices would have to range between $50 and $55 for the country to make any money.
Infrastructural works are on course signaling a bright future for Kenya which currently is a net importer of oil.
Kenya has an estimated 750 million barrels of recoverable reserves.
The government has already begun engaging refineries over possibility of refining Kenya’s crude oil.
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