ECONOMY

First Sh1.2bn Oil Export Places Kenya on Global Map

Share
Kenya first oil exports www.businesstoday.co.ke
President Kenyatta and other government leaders wave at a ship carrying Kenya’s first crude oil to the international market on August 26, 2019. [ Photo/PSCU ]
Share

Kenya’s dream to join the league of petroleum exporting countries became a reality on 26th August as the first consignment of Kenyan crude oil left the Port of Mombasa.

The 200,000 barrels of low-sulphur crude from Kenya’s oil fields in Turkana County, bought by United Kingdom-based ChemChina UK, is valued at Ksh1.2 billion, a price much higher than what was initially projected.

Kenya is using this initial export to test the global market before it embarks on large scale commercial production of its oil. The inaugural shipment of crude oil makes Kenya the first country in the region to become an oil-exporting nation.

The Celsius Riga, the ship carrying the crude oil left the Mombasa Port for Malaysia shortly after midday, after it was flagged off by President Uhuru Kenyatta, who said it was a milestone moment for Kenya as it becomes the first country in the region to become an oil exporter.

“I am proud to say Kenya’s grand march to oil and gas production and export has begun,” he said. “This maiden consignment represents a new dawn for Kenya; and the beginning of an era of greater prosperity for all Kenyans.”

Kenya’s Early Oil Pilot Scheme (EOPS) commenced in June 2018, marking the beginning of the journey towards full development of Kenya’s oil and gas resources.

President Kenyatta said EOPS has shown global markets that Kenya possesses the know-how and infrastructure required to facilitate full production of commercial quantities of its oil resource.

The President said the next phase following the success of the pilot project will include full-field development that will be characterized by production and pipeline transportation of crude from Lokichar to the new Port of Lamu.

President Kenyatta said the oil project has already brought benefits for the people of Turkana County, with the local communities directly benefiting from employment opportunities in production and logistics, in addition to the provision of ancillary and support services.

“As we proceed to full-field development, we will ensure that local communities are major beneficiaries of these resources,” President Kenyatta assured.

Petroleum Cabinet Secretary John Munyes said the Government plans to construct a pipeline between Turkana and Lamu to transport the crude oil.

Governors Ali Hassan Joho (Mombasa), Fahim Twaha (Lamu), Prof John Lonyangapuo (West Pokot), Salim Mvurya (Kwale) and the Deputy Governor of Turkana County Peter Emuria also spoke at the function.

 

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
President Ruto Provides Update on Affordable Housing
ECONOMYNEWS

President Ruto Provides Update on Affordable Housing

In his State of the Nation Address at the National Assembly today,...

President Ruto’s Cabinet Resolution: Economy of Kenya Is Doing Good
ECONOMYNEWS

President Ruto’s Cabinet Resolution: Economy of Kenya Is Doing Good

In 2022, the Kenyan people turned to William Ruto to lead the...

World Bank Argues KPLC Monopoly Good for Kenya
ECONOMY

World Bank Argues KPLC Monopoly Good for Kenya

Competition fosters economic welfare and makes markets work for development, the World...

In Signing Sugar Bill, Ruto Aims to Transform Sugar Sector
ECONOMYNEWS

In Signing Sugar Bill, Ruto Aims to Transform Sugar Sector

President William Ruto signed the Sugar Bill on Friday at State House,...