Home BUSINESS NEWS Kenya’s Second Batch of 500,000 Barrels of Crude Oil set for Shipment

Kenya’s Second Batch of 500,000 Barrels of Crude Oil set for Shipment

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Kenya's Second Batch of 500,000 Barrels of Crude Oil set for Shipment

The second batch of 500,000 barrels of crude oil is set to leave the country at the end of February, 2020.

The shipment will still be part of Kenya’s ongoing tests of the quality of its oil deposits ahead of Tullow Oil’s final investment decision (FID) at the end of next year, according to Citizen Digital.

Speaking on Tuesday during a media update of Kenya’s oil exploration, Brian Muriuki, an advisor to the State Department of Petroleum, said the government expects to get better prices from the sale of the second batch of crude oil.

“We would anticipate better pricing from a larger load. With a larger vessel we would expect to get closer to Brent parity in terms of pricing,” said Muriuki.

Kenya raked in Sh1.2 billion ($12 million) from the sale of its first batch of 240,000 barrels of crude in August under the Early Oil Pilot Scheme (EOPS) initiative.

The government said a Chinese company named ChemChina UK Limited purchased the first batch of crude oil having beaten all other bidders who were eyeing the commodity.

“ChemChina UK LTD was selected following a competitive tender process… an invitation to bid was issued to prospective buyers on 26th July 2019,” read the statement.

Kenya’s first crude oil shipment was valued at a near Brent Crude premium of $6o, putting the country’s oil prospects at top-end market valuation.

3 COMMENTS

  1. How will this change people…
    How will this change people’s lives? Who benefited from the first batch? (a few individuals?)

  2. It would help if the…
    It would help if the government with its desire to be transparent tell tax payers how the 12 million dollars has been spent,and how it plans to spend the revenue from this second batch? Its only fail,since the oil belong to the people.

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