A high ranking officer of oil exploration company Tullow Oil has said the Final Investment Decision (FID) for the early oil pilot scheme in Kenya’s oil rich South Lokichar basin is expected between June and July, Oil In Kenya, a Kenyan news website with an eye for oil and gas, quotes Anthony Mwangi Tullow Oil’s director of government, public affairs and communication.
Mwangi was speaking at the recently held 2nd Turkana Oil and Gas Conference in Lodwar. The explorer then expects early oil at a rate of 2,000 barrels of oil a day through road transport to commence in July 2017 from where it shall be stored for up to 8 months as to when adequate export amounts of over 600,000 barrels shall be achieved.
Already the company says it holds about 70,000 barrels at the Ngamia and Amosing fields that was extracted during the extensive well testing programme. The early oil according to Mwangi will enable the country acquire knowledge on how to access markets with factors such as refineries to be contracted to refine the waxy oil yet to be identified.
“Since it is clear that the Mombasa refinery cannot refine our crude oil we need to identify specialized refineries in East Asia such as Malaysia and India to handle this oil before we start exporting 100,000 barrels a day,” Mwangi said.
This will be ongoing as work on the pipeline continues with efforts to identify the project designer expected to conclude in the next fortnight. To date field development studies ongoing as well as the early oil pilot scheme and Expression of Interest on pipeline.
The environmental impact assessment is also to be carried out with the International Finance Corporation (IFC) coming in as a joint venture partner with the work surely to be carried out as per World Bank standards,” says commissioner for petroleum Martin Heya.
Tullow Oil estimates that the investment in the oil and gas sector in the Eastern Africa region could reach $100 billion in the next five years providing numerous employment opportunities for skilled residents.
To date Tullow Oil estimates to have spent about $1.5Billion used so far in its activities that including 31 wells exploration and appraisal wells, training and capacity building a majority of which is recoverable. as per the latest estimates Kenya has 750 million barrels of recoverable oil.
The website also reports that Africa Oil, Tullow's partner in the Turkana region, has reiterated that the South Lokichar basin could see 2-4 Potential basin-openers in late 2016 and beyond as well as 4-8 Appraisal and exploration drilling targets raising hopes of renewed activity in Kenya’s Blocks 10BB and 13T.
Africa Oil has also said the partners continue to advance Appraisal and Exploration Drilling Targets for consideration in the next drilling program with focus on appraisal/step out opportunities in northern area of Lokichar Basin.
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