Extractive and Energy

Tullow Oil set to extract 2,000 barrels of crude oil from Kenya in November

The equipment is set to be installed in November following Tullow’s passing all the necessary approvals from the government.

Sub-Saharan country Kenya raised eyebrows ever since oil deposits were found in South Lokichar, Kenya’s North. This has been a great pull to investors more specifically petroleum and oil companies. Since its discovery, the resource has been of vital boost to the economy of the country with establishment of oil companies to harness the precious resource.

Dubai, one of the wealthiest cities was approached by Tullow Oil for a deal that would be two way traffic in benefit enjoyment. Almansoori Petroleum Company has been contracted by the leading independent oil exploration and production company to supply an Early Product Facility (EPF). The EFP is estimated to be in the region of $10 million that will aid the  multinational oil and gas exploration company extract crude oil in Lokichar.

However, there are some uncertainties that surrounds the Early Oil Pilot Scheme. The environmental effect and to some extent causing geographical discomfort have been highlighted as barriers to the process to be executed. It is a mandatory requirement that such projects first be given a green light to ensure safety not only to the environment but also the settlers.

The agreement between the two was engaged earlier this year as part of a long-term agreement to facilitate early production that has somewhat experienced bad energy after falling out with the government in logistics.

However, Tullow Oil had had the approval given by the government to invest in the Early Product Facility that has already been established. The Ministry of Energy had given a go ahead for the procurement.

Tullow’s cutting edge was its huge investment in the country. Since it began its operations in the East Africa country in 2010, the company has invested close to $1.5 billion, with $213.5 million coming in thus year. They are splashing $100 million on oilfields preparation to begin production and crude oil exportation.

The EPF will help Tullow Oil link all 40 wells it has dug to achieve a target extraction of 2,000 barrels of crude every day when the process begins. The equipment has been ordered on a rental basis and Tullow will make use of it for most time it has.

The equipment is set to be installed in November following Tullow’s passing all the necessary approvals from the government. The oil firm has confirmed the equipment is already on its way.

“We have decided to rent a temporary facility for pumping the crude for transportation to Mombasa before a permanent production facility can be installed to facilitate full-scale production when the pipeline is ready,” said Tullow Oil communications manager Timothy Tororey.

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