Kenya hopes to begin production and exports of commercial crude oil next year, Opiyo Wandai, Cabinet Secretary for Energy and Oil, said, as the company will complete the wealth and development project plan for the land resource pool.
The East African country has oil and gas resources, but development has been stagnant after its investor partners, including those from the UK, failed to secure large-scale oil projects.
Tullow Oil and its minority partners have tried South Lokichaft for many years: France’s Ultra Major Energy and London-listed Africa’s withdrawal from the Kenya project two years ago. Taro Oil left the sole owner of the block, leaving further complications for the Kenya Oil Dream.
Plans have been made for the development of an oil field discovered in the South Wing Locomotive Basin in northern Kenya. The partners have tried to secure pipeline funding to send crude oil from the North Muro region.
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Earlier this year, Tullow Oil Plc said it had signed a contract with Gulf Energy Ltd for reasons to sell the profits of all jobs in Kenya for at least $120 million.
Gulf Energy has now completed the acquisition of Taro Oil assets, but the Southern Lokicher Basin Field Development Plan (FDP) is due, Kenyan media reported Monday.
The project is expected to produce between 60,000 and 100,000 barrels (BPD) per day, which will restore an estimated 560 million barrels over 25 years.
Kenya could position this as an actor in the global oil market, Wang Dai said today. The Cabinet Secretary said in March that Kenya would begin a 10-block oil and gas exploration round in September.
The Kenyan government has updated its efforts to implement the oil and gas industry, offering tax incentives, among other things.
