Tullow to triple crude trucking after deal

What you need to know:

  • Trucking of the crude to the dormant Kenya Petroleum Refineries tanks in Mombasa will resume from August 22 or 23.
  • About 600 barrels per day (bpd) were being transported before the impasse, short of the targeted 2,000 bpd under the trucking scheme.
  • That has raised concerns the 400,000 bpd targeted by the Petroleum ministry for export under the early oil pilot scheme (EOPS) may take longer than anticipated.

Tullow Oil plans to triple transportation of crude from oilfields in south Turkana to 2,000 barrels daily from January after authorities struck a deal ending a near 45-day costly blockage, managing director Martin Mbogo said on Monday.

Trucking of the crude to the dormant Kenya Petroleum Refineries tanks in Mombasa will resume from August 22 or 23.

About 600 barrels per day (bpd) were being transported before the impasse, short of the targeted 2,000 bpd under the trucking scheme.

That has raised concerns the 400,000 bpd targeted by the Petroleum ministry for export under the early oil pilot scheme (EOPS) may take longer than anticipated.

The pilot is aimed at testing the temperature at which the oil will flow and other technical aspects crucial in designing pipeline for full production by 2022.

“The contractor is back on ground. We have full confidence in the structures that have been set up as being sufficient to handle any grievances or challenges on the ground,” Mr Mbogo said. “We hope to hit the 2,000 barrels a day trucking levels early next year around January.”

Residents around the oilfields had on June 27 blocked moving of crude by the four trucks with a capacity of 150 bpd each which had been commissioned by President Uhuru Kenyatta on June 3.

The rowdy protesters demanded improved security in the vast area prone to bandit attacks and, a fair share of jobs and tenders before operations could resume.

About Sh10 million was being lost daily during the impasse, the ministry said, adding to Sh400-Sh450 million total costs, less than half the Sh1 billion estimates given by Petroleum Chief Administrative Secretary John Mosonik on July 26.