This archive report was first published on 1 August 2019.
On August 1, 2019, Kenya made history by signing its first oil export deal worth US$12 million (Ksh 1.2 billion), solidifying its position as an oil-exporting nation.
The deal, a major milestone in the country's Early Oil Pilot Scheme (EOPS), was concluded after months of setbacks, particularly in transporting crude oil from the Lokichar fields in Turkana to Mombasa.
President Uhuru Kenyatta announced the achievement after chairing a Cabinet meeting at State House, Nairobi, stating, 'We are now an oil exporter. Our first deal was concluded this afternoon with 200,000 barrels at a price of 12 million US dollars. So, I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty.'
The EOPS had faced challenges, including the initial transportation of only 156 barrels of crude oil from Lokichar to Mombasa in June 2018. However, Tullow Oil increased the daily transportation volume to 2,000 barrels in May, paving the way for the export deal.
According to Tullow's latest trading update, the oil stocks were ready for export in September, and the company expects East Africa's first export cargo of oil to be sold and lifted in the third quarter of 2019.
Kenya's commercial oil deposits are estimated at 750 million barrels, with the oil stocks valued at about US$ 12 million based on international crude oil prices of about US$63 per barrel.
