This archive report was first published on 31 July 2019.
Kenya is set to unveil its first crude oil buyer next week, marking a significant milestone in the country's oil exploration journey.
According to Petroleum Permanent Secretary Andrew Kamau, the country has gathered its minimum 200,000 barrels of crude oil in readiness for shipping, which is expected to take place after mid-August.
"We are now working on the jetty and the insulated ship loading pipes in readiness for the shipping next month. We had given the samples to the potential buyers but they have not concluded yet. We will know their results next week," Kamau said.
The crude oil is being trucked from Lokichar under the Early Oil Pilot Scheme, a partnership between the government and Tullow Oil, Total Kenya, and Africa Oil.
The scheme, which started in July 2018, has been criticized for being a loss-laden experiment, with estimated expenses of billions of shillings, including at least Sh500 million in trucking costs.
The production sharing contracts and other agreements between the government and the British multinationals remain tightly guarded, although Tullow has stated that they would release the document once the Ministry of Petroleum allowed them to do so.
The Early Oil Pilot Scheme is expected to end in March 2021, meaning the trucking will continue even after the ship leaves with the first consignment of the crude, which is being stored under heated conditions at the Kenya Petroleum Refineries Limited tanks in Mombasa.
