Home Business Kenya signals milestone crude processing offer with oil companies

Kenya signals milestone crude processing offer with oil companies

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The Kenyan government has signed agreements with oil important Overall, Tullow Oil and Africa Oil Corp to establish a 60,000-80,000 barrels per working day crude processing facility for oil found out in the country’s northwest.

The Petroleum and Mining Ministry reported on Twitter on Tuesday that the heads of phrase agreements had been for discoveries in Blocks 10 BB and 13T in South Lokichar Basin and the associates were now focusing on securing financing for an export crude oil pipeline.

Tullow and Africa Oil initially identified crude oil in the Lokichar basin in 2012, which Tullow Oil estimates contains an believed 560 million barrels in tested and probable reserves. Tullow has explained this would translate to 60,000 to 100,000 barrels per working day of gross production.

In addition to the processing facility, a crude oil export pipeline from Lokichar to Lamu on Kenya’s coastline was also portion of the deal.

“The infrastructure set up for the Foundation Stage will be utilised for the progress of the remaining oil fields and potential oil discoveries in the region, enabling the incremental advancement of these fields to be finished at a lessen unit cost,” Tullow Kenya said in a assertion.

Tuesday’s offer is a major milestone on the way to a closing investment decision conclusion on Kenya’s first oil undertaking, which Tullow aims to access by the close of the 12 months. It expects very first full-scale oil creation in 2022.

It has place the price tag tag for its Kenyan upstream facilities at $1.8 billion and the pipeline at $1.1 billion.

In February, the govt reported the crude oil deposits identified so far in Kenya ended up inadequate to justify construction of a refinery.





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