Kenya Completes First Oil Export Deal, President Announces Sh1.2 Billion Transaction

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Nyakundi Report

Newsroom 1 min read

President Uhuru Kenyatta confirmed Kenya's first oil export transaction, involving 200,000 barrels priced at Sh1.2 billion ($12 million), during a State House address. The deal positions the East African nation among oil-exporting countries, though commercial production remains pending.

Kenya discovered commercial oil reserves in the Lokichar basin in 2012, with Tullow Oil estimating 560 million barrels in 2C proven and probable reserves. The company projected 60,000-100,000 barrels per day in gross production, but export timelines have faced delays.

The initial shipment involved oil produced in 2015 during well testing, transported to Mombasa for stockpiling. By March 2019, Tullow had exhausted Lokichar's stored oil and was constructing an Early Production Facility capable of 2,000 barrels daily. The government aimed to accumulate 200,000 barrels for the first export, though only 88,000 had been trucked to Mombasa by May 2019.

The Early Oil Pilot Scheme, initially targeting June 2019 exports, faced setbacks as Tullow transported only half the required volume. The first crude shipment from Lokichar reached Mombasa's Changamwe KPRL facility in June 2018, according to a supporting image.

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