Crude Oil from Lokichar Ready for Exportation to International Markets

Kenya is ready to start exporting crude oil from Lokichar, in Turkana County to International markets following storage of a total of 70,000 barrels.

The stored barrels are waiting to be transported to the Port of Mombasa where they will be ready to be exported to the international markets.

According to the Principal Secretary of State Department of Petroleum, Andrew Kamau, the stored oil will be exported through the Early Oil Pilot Scheme due to the delay of the Petroleum Bill 2017 adding that the early oil exports would be followed by commercial production and exports after the pipeline is completed in 2021.

The Bill, which outlines how the revenue is shared among sharing to the national government, counties and the community surrounding the oil resource must be passed before large-scale oil production can begin.

That, however, is posing the greatest challenge after it was temporarily withdrawn last month following numerous changes made to it.

The Energy Committee proposed amendments to the contentious clause in the Bill to raise the sharing of petroleum resources to local communities from five to 10 percent of the government share despite President Uhuru Kenyatta’s rejection.

The President rejected the Bill that proposed a 10 percent share directing Parliament to reduce it to five percent.

Last month the Kenya Oil and Gas Working Group called on Parliament to better define the roles of the petroleum cabinet secretary, National Environment Management Authority and the Upstream Petroleum Authority in their submissions to parliament.

The government plans to have the oil transported by road from Turkana to Eldoret for onward delivery by train to the Mombasa port.