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| An oil refinery |
The Kenya oil sector
edged closer to commercial production after the country signed a deal for the
development of a refinery and construction of a pipeline from Lokichar in
Turkana County to Lamu County.The Heads of Term agreement signed yesterday
between the government and its joint venture partners—Tullow Oil, Total and
Africa Oil Corporation — was for discoveries in in Blocks 10 BB and 13T in
South Lokichar Basin.
In the deal, a
refinery that can process 60,000 to 80,000 barrels of oil per day will be
constructed and the partners can now source funds for construction of the pipeline.
Speaking during the signing of the pact in Nairobi, Petroleum and Mining
Cabinet secretary John Munyes termed the development a significant milestone
towards Kenya becoming a major oil exporter by 2022.
“The agreement
provides a framework and commercial certainty required to move ahead with
negotiating upstream and midstream long form agreements ahead of the Final
Investment Decision (FID),” Said Munyes.The agreement, which took 15 months to
negotiate, now paves way for sourcing Sh300 billion for the project from next
month.
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