This archive report was first published on 16 August 2019.
On July 26, 2019, Kenya conducted a rigorous bidding process for its first crude oil shipment, which attracted eight bids from Asian and European countries. The Petroleum PS, Andrew Kamau, confirmed that the decision to award ChemChina the tender was based on competitive prices and international best practices.
ChemChina's offer to buy 200,000 barrels at $12 million translates to $60 (KSh6,180) per barrel, which is higher than the current Brent crude oil market price of $58.80 (KSh6,056). President Uhuru revealed this information earlier this month.
The discovery of commercial oil reserves in 2012 in Turkana's Lokichar Basin marked a significant milestone for Kenya's oil industry. The project is a joint venture between Tullow Oil (50%), Total (25%), and Africa Oil Corp (25).
Kenya began preparations for oil export in 2018, testing the rate of flow and other technical issues of approximately 2000 barrels per day. The country aims to exploit its 560 million barrel oil reserves in 2022, producing 100,000 barrels per day. Plans are underway to construct a pipeline in 2022 to aid transportation and export of the oil.
