The Kenyan Finance Minister, Henry Rotich, said that the early exportation of 2,000 barrels of crude oil from Kenya in January 2017 would be the first stage until the country completes the construction of an oil pipeline, Global Times reported.
The government together with UK’s Tullow Oil, Africa Oil, and Maersk Oil, are working on the early oil pilot scheme, which will produce oil from five wells. This will come together with full field development, which includes Lamu Port Southern Sudan-Ethiopia transport corridor and a crude oil pipeline to carrying between 80,000 and 150,000b/d, according to Daily Nation.
The scheme will help establish Kenya as a crude oil exporter and provide valuable information on the international market for Kenyan crude. It will help introduce the oil to the market in a low-key way and provide an understanding of what potential buyers are prepared to pay for it.
Since 2012, Kenya has drilled 45 exploration wells. Furthermore, the country’s parliament has approved the Petroleum Bill 2015, the Community Land Bill 2015, and the Energy Bill 2015 to set out the industry’s regulatory structure and ensure that it is managed in a transparent and equitable manner, with all production-sharing agreements ratified.