This archive report was first published on 27 August 2019.
On 26th August, Kenya made history as the first consignment of Kenyan crude oil left the Port of Mombasa, bound for Malaysia. The shipment, consisting of 200,000 barrels of low-sulphur crude, was valued at Ksh1.2 billion, a price significantly higher than the initial projection.
The oil, extracted from Kenya's oil fields in Turkana County, was purchased by United Kingdom-based ChemChina UK. This inaugural export is seen as a test run for the global market, paving the way for large-scale commercial production of Kenya's oil.
President Uhuru Kenyatta flagged off the Celsius Riga, the ship carrying the crude oil, shortly after midday. In his remarks, the President hailed the occasion as a milestone moment for Kenya, marking the beginning of an era of greater prosperity for all Kenyans.
"I am proud to say Kenya's grand march to oil and gas production and export has begun," the President said. "This maiden consignment represents a new dawn for Kenya; and the beginning of an era of greater prosperity for all Kenyans."
The Early Oil Pilot Scheme (EOPS), which commenced in June 2018, has been instrumental in showcasing Kenya's capabilities in oil and gas production. The scheme has demonstrated that Kenya possesses the necessary infrastructure and expertise to facilitate full production of commercial quantities of its oil resource.
President Kenyatta emphasized that the next phase of the project will involve full-field development, including the production and pipeline transportation of crude from Lokichar to the new Port of Lamu. He assured that local communities will be major beneficiaries of the oil project, with employment opportunities and ancillary services already being provided.
As Kenya embarks on this new chapter in its economic journey, the government plans to construct a pipeline between Turkana and Lamu to transport the crude oil.
