President Kenyatta on Monday flagged off the first shipment of crude oil from the port of Mombasa, marking Kenya’s entry into the league of oil exporters.
The 200,000 barrels of crude oil will be shipped by Chinese company ChemChina UK Limited, which won the tender to purchase the first Kenyan oil early this month.
The government announced that ChemChina UK Limited bought the country’s first batch of crude oil at 12 million US Dollars (about Sh1.2 billion) after beating seven other bidders who were eyeing the commodity.
The crude oil was transported by road from Turkana County for storage at the Kenya Petroleum Refinery facility in Changamwe, Mombasa.
The United Kingdom oil exploration company, Tullow struck oil in Turkana’s Lokichar basin in northwest Kenya in 2012.
The government said the small-scale export aims at testing the international markets’ reception of Kenya’s low-sulfur oil ahead of full commercial production in 2023.
Tullow Oil CEO Paul McDade said the shipment of the 200,000 barrels will continue for the next 18 to 24 months.
“This shipment is the first under EOPS (Early Oil Pilot Scheme) and 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.
