State unveils first Turkana crude oil buyer next week

Kenya’s Turkana crude oil buyer will be known next week as the country gears up for its first shipping overseas to test the market.
Petroleum PS Andrew Kamau said the trucking of crude had gathered its minimum 200,000 barrels in readiness for shipping, which is expected 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,” he said. Kenya has been trucking the crude from Lokichar under the Early Oil Pilot Scheme in partnership with Tullow Oil, Total Kenya and Africa Oil.

The scheme, which started in July 2018, has been criticised in the past as loss laded experiment, which is expected to have gobbled billions in expenses including at least Sh500 million in trucking costs alone as Kenya plans to build an oil pipeline.

The production sharing contracts and other agreements between the government and the British multinationals also remain tightly guarded, although Tullow has previously 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.



  1. What do you think the cost of our oiro is?
  2. Why has the contract between govt and Tullow not been made public?
  3. Which country do you think will buy our oiro?
  4. If trucking alone has cost 500m to ship 200k barrels, do you think this first sale will break even?

Iran ships 50,000 barrels of free oil to Syria DAILY. Kenya haina mafuta

  1. That contract you will not get especially now that President Uhuru doesn’t care about peoples opinion. Only senate and Parliament can compel the executive to share the agreement signed so far. Now before people get carried away know the only agreement signed so far are for oil explorations. No agreements have been signed for oil production, cost of oil and revenue sharing. Only last month did we sign a parties agreement between Tullow, Total, Africa Oil on one side and GoK on behalf of the Republic of Kenya to start formal negotiations on all these production agreements.

  2. All the oil drilled in Lokichar during exploration belongs to GoK. Its not to be shared with anyone. Tullow work was to explore.

  3. The early oil program was not primarily aimed as a profit venture. You can’t sell oil to the industry out of the blue. Thanks to our two resident petroleum experts here, I have confirmed they were spot on. Oil is not universal. Its varies in quality and chemicals that need to be tested first by buyers beforehand. That and its grading will determine its actual price. This excise was to facilitate that. Get our oil to market buyers as a test sample sale and then we can know its true global value.

  4. The transportation tender was advertised and awarded. Kama MTU akupata aseme. Kama President Uhuru gave his friends prove it. Otherwise pia tafuta a Kalenjin in government there and say he us to blame. All the loud people will belief that instantly and he will soon be known as a distant cousin clansman of DP Uncle Ruto.

In other news ulipata 1777.:smiley:

There goes @sani the pessimist . Are you still waiting for Raila and Uhuru to hand the Presidency to LootAll ?

hehehe 1777 ako tu sawa. he’s asleep.
thanks for the updates. now assuming that the results come in and they say hawataki hiyo mafuta, will we cease exploration? If we don’t, will we refine it and make our petrol cheaper locally?

Our oil is too small (confirmed 1 billion reserve) that will last for 23 years. In Saudi Arabia this oil find would have been plugged as too little to even develop it to production. At 80000-100000 barrels a day, its too little for anyone to consider a refinery which can’t even last quarter century. My only hope is that during production they will have to drill 300 wells on the proven oil fields. Alot of good surprises can be realized. Remember in those 8 years of Tullow exploration they only drilled 30 wells. Refinery is also another precise engineering decision. The less oil, the less need or risk of investment to oil majors. If the pokot clashes hadn’t taken place in 2016-17 then maybe exploration would have continued but it scared off Tullow staff.

Oil will not lack market in a global industry addicted to it. The only thing to determine is its actual price. Our oil isn’t the sane with Brent crude, Tunisia sweet crude, Saudi crude etc. We need to know the demand of our waxy crude then plan around it.

ile mafuta iko kenya ni bure. wait until oil prices collapse again, burrowing for that gunk will be more expensive than how much you can sell it

Will it really happen, consider Nigeria

Currently, what is the estimated volume of all oil reserves in the country? How much can we explore and possibly for how long?

as this question gets an answer, take into account the offshore blocks that Somalia is fighting for.

Why can’t we test it here and if it’s “good” we just use it here? What’s the rationale of exporting particularly given its limited capacity?

Time will prove me right. You don’t double cross William Ruto.

What happens when you double cross him ?

Inapita wapi? Are you even aware there an Iranian ship held over trying to sneak in oil to Syria?

Am aware and i posted about it here when it was hot news

yako iko wapi tuone kama ya Kenya ni bure

Estimated oil reserves isn’t taken as a real measure in the industry. Because is a rough guess. Proven oil reserves is everything. That means you have conducted exploration, done 3D maps, dug exploration oil wells and discovered oil. So far that stage is complete in Lokichar region of Turkana. Those oil reserve estimates in Wajir, Lamu, Marsabit etc need to go through the same process then we can have complete data to ascertain.

On refinery someone can upload the link to that debate here. Its been repeated too much. Too little oil, two short a time span to interest an investor to build one. Building the small ones will also not reduce the oil prices as refineries use economy if scale to make the overall oil cost to be low. That’s why small refineries died when Mega refineries got built.

You are not getting my point, when I mean test it here, its not a laboratory. The test is the market, tunafungua kiosk kwa crude market and telling buyers this is the new kid in the block. Turkana oil. Buy barrels and see if you can consider buying in bulk on contract. This is our estimated reserve price.

unfortunately those who have tried it before (may they rest in peace) are not here with us to tell us…

My thinking exactly!