Kenya oil export potentially delayed

Image: CNBC Africa

Kenya‘s goal of becoming an oil exporting country by 2022 may not be realised, as Tullow Oil notes government delays are hindering the advancement of its plans.

According to reports, Kenya was set to export its first oil in the third quarter of this year, however, in a statement released yesterday the multinational oil and gas company said delays from the government in making critical decisions have potentially stalled output.

Tullow Oil – which has had successful exploration and appraisal drilling campaigns in Kenya since 2012– had expected to increase oil production to 2,000 barrels from the Turkana oil field by September. However, the company has downgraded its production output, as a result of the possible delay.

In June last year, President Uhuru Kenyatta launched an Early Oil Pilot Scheme, establishing a basis for commercial oil production, which is expected to begin in 2021/22.

Tullow is dedicated to making its final investment decision this year, which will finalize the Front End Engineering Design studies for the Lokichar- Lamu pipeline project, but the company has stated this now seems an ambitious target.

The pipeline is estimated to cost $4 billion in total, including upstream operations.