This archive report was first published on 25 July 2019.
Kenya has made significant strides in its oil production, with 200,000 barrels of crude oil valued at Sh1.3 billion being safely delivered to Mombasa by London-based Tullow Oil.
According to Tullow's latest trading update, the company expects East Africa's first export cargo of oil to be sold and lifted in the third quarter of 2019.
The oil stocks are valued at Sh1.3 billion based on international crude oil prices of about $63 (Sh6,500) per barrel.
These exports are intended to test the international markets' reception to Kenya's low-sulphur oil ahead of commercial production, which is now estimated to start in the second half of 2023.
Tullow has been transporting the oil by road to Mombasa, with the daily volume increasing from 600 barrels in the initial stages to 2,000 barrels in May.
The company has expressed confidence in the project's profitability, citing recent agreements with the government and ongoing regulatory and infrastructure works.
As Tullow noted, 'This represented a material and encouraging step forward which gives all parties confidence that the project will be robust at low oil prices.'
