Kenya's oil export dreams delayed to 2028
By Bashir Mohammed |
Kenyans have been waiting for years for the country to start exporting oil, following the trial export of 240,000 barrels of crude in August 2019.
Kenya's ambition to join the league of global oil exporters has been pushed back to 2028, according to the latest Field Development Plan (FDP) submitted by Tullow Oil to the government.
Setbacks and uncertainties have caused the latest delay in the project.
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Tullow submitted the FDP to the Energy and Petroleum Regulatory Authority (Epra) for review and approval, outlining its plan to develop Turkana's oil fields, forecasting an initial plateau production of 120,000 barrels per day.
However, the plan is contingent on securing a strategic partner to help finance the project, as well as obtaining land and water access rights.
"The plan anticipates the attainment of first oil in 2028," said Epra in its latest statistics report. "However, this will depend on whether Tullow manages to secure a strategic partner and requisite financing."
Pulled out
Tullow's joint venture partners, Canadian firm Africa Oil and French oil giant TotalEnergies, pulled out of the project in May last year, leaving the company to seek a new partner.
The company has also cited uncertainties in securing governmental approvals and financing for the project.
Kenyans have been waiting for years for the country to start exporting oil, following the trial export of 240,000 barrels of crude in August 2019 under the Early Oil Pilot Scheme (EOPS).
In 2012, the country made its first commercial oil discovery in Turkana, but various factors have delayed the project.
The government has extended the review period for the FDP to June 30, 2024, and Epra is playing an advisory role in informing its approval and progression to the Final Investment Decision (FID) and ultimately full field development.
The Director General of Epra expressed the Authority's commitment to developing the project in a way that benefits all Kenyans. "We will work closely with Tullow Oil and other stakeholders to ensure that the project is a success."
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