This archive report was first published on 30 July 2019.
Kenya is set to make history with its first shipment of Turkana crude oil overseas, marking a significant milestone in the country's oil exploration journey.
According to Petroleum PS Andrew Kamau, the country has gathered its minimum 200,000 barrels of crude in readiness for shipping, which is expected to take place after mid-August.
Speaking on the progress of the Early Oil Pilot Scheme, Kamau revealed that the trucking of crude from Lokichar has been ongoing since July 2018, with the scheme being implemented in partnership with Tullow Oil, Total Kenya, and Africa Oil.
However, the scheme has been criticized in the past as a loss-laden experiment, with estimates suggesting that it has cost the country billions of shillings, including at least Sh500 million in trucking costs alone.
Despite the criticism, the government remains committed to the project, with the production sharing contracts and other agreements between the government and the British multinationals remaining tightly guarded.
It is worth noting that the Early Oil Pilot Scheme is expected to end in March 2021, meaning that the trucking of crude will continue even after the first consignment of the crude is shipped overseas.
