Uhuru flags off first Ksh.1.2B crude oil shipment from Mombasa Port
President Uhuru Kenyatta has flagged off the first shipment of crude oil from the port of Mombasa as Kenya enters the league of oil exporters.
The oil that has been sold to a Chinese firm — ChemChina UK Limited — raked in Ksh.1.2 billion.
According to Tullow Oil CEO Paul McDade, the shipment happening at the Kipevu Oil Terminal in Mombasa will continue for the next 18-24 months.
“This shipment is the first under EOPS (Early Oil Pilot Scheme) & trucking will continue for the next 18-24 months. For Project Oil Kenya, the Kenya Joint Venture In collaboration with the Government of Kenya target to reach a final investment decision in 2020,” said McDade on Monday.
Earlier on the government, together with Tullow Oil and its joint venture partners, said the Chinese firm beat seven other bidders said to be international firms representing European and Asian refineries.
“ChemChina UK LTd was selected following a competitive tender process… an invitation to bid was issued to prospective buyers on 26th July 2019,” said the joint statement.
The sale completes the first leg of Kenya’s prospects in crude oil production. In July 2018, Kenyatta flagged off the first consignment of crude oil from the Lokichar oil fields in Turkana County.
Tullow Oil would then truck 240,000 barrels of the product for storage at the Kenya Petroleum Refineries in Changamwe Mombasa County.
ChemChina UK Ltd is expected to begin shipping out the crude out of Mombasa this week.
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