Kenya to start exporting oil after achieving critical volume of 200,000 barrels

June 7, 2018 (3 weeks ago)
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MOMBASA, Kenya, Jun 7 – Kenya will start exporting its own crude oil after achieving the critical volume of 200,000 barrels stored at the Kenya Petroleum Oil Refineries Limited in Mombasa.

On Thursday, the first consignment of 600 barrels that was flagged off on Sunday by President Uhuru Kenyatta was received at the KPRL.

The four trucks, each carrying 150 barrels, covered 1,000km journey from Lokichar in Turkana county to the port city of Mombasa.

According to the national government, the KPRL storage tanks, which have been improved in readiness for the consignment at a cost of Sh200 million, will be receiving 2,000 barrels a day.

Petroleum and Mining Chief Administrative Secretary John Mosonik described the journey towards exporting oil in the country as an impressive and painful.

Mosonik said by next year, the oil and gas sector will be Kenya’s fourth highest foreign exchange earner after tea and coffee and tourism.

“Crude oil will be sold to the world oil markets. At the moment, we will be having four trucks coming to Mombasa from Turkana daily, but this will improve to 100 trucks a day with time, translating to more jobs for youth in the country,” said Mosonik,

He said the upgrading of the storage facilities at KPRL in Changamwe Mombasa is expected to be fully completed by February 2019,

“In future, we are looking at upgrading the KPRL facilities so that we can be able to add value to our crude oil,” said Mosonik.

The improvement works include modification and insulation of receipt tank number 117, which has a capacity of 90,000 barrels, two adjacent truck unloading bays, a steam boiler for line heating and re-heating the crude oil trucks if necessary.

Kenya Pipeline Company Chairman John Ngumi said the company has spent close to Sh3 billion in the partnership program between KPC and KPRL.

“We have spent about Sh1 billion on the operations of the KPRL including salaries and the others, another Sh200 million on improving the facilities to receive the crude oil and another Sh1.8 billion on
improvement of other facilities around,” he said.

The acting KPRL CEO Charles Nguyai said they have a lot of assets that can be used by the government in efforts to develop the new sector in the country.

“We are also willing to do whatever we can so that we can help the national government achieve its objectives,”

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