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The Kenyan government and its Joint Venture Partners: Tullow Kenya, Total and Africa Oil Corp, have signed Heads of Terms for the development of Kenya’s oil fields in South Lokichar Basin, where oil exploration and production has been ongoing on small scale. Also factored in the agreement is the construction of Kenya’s oil pipeline linking the oil fields to the Lamu Port, where the government is constructing the country’s second major sea port after the Port of Mombasa. The government signed an Early Oil Pilot Scheme agreement with Joint Venture Partners in 2017 allowing all upstream contracts to be awarded, including trucking of 600 barrels of oil per day to Mombasa ready for exports.

The first batch is intended to test the international markets

Kenyan crude oil could test the global markets before the end of this year, latest developments indicate, as stocks of the commodity continue to pile up at a storage facility in the port city of Mombasa.

In its latest operational update for the period January 1-April 25, 2019, British firm-Tullow Oil plc (Tullow), says the first export cargo is expected in the third quarter of 2019, even as exploration and drilling intensifies in the Turkana region.

This comes as the Early Oil Pilot Scheme continues to truck 600 barrels of oil per day (bopd) to Mombasa, where 80,000 barrels of oil are being stored ahead of export.

READ:Kenya oil exports gains momentum as Tullow bounces back to profitability

The crude oil from the Turkana oil fields is being stored at the defunct Kenya Petroleum Refineries Ltd (KPRL) (refinery) facility …