NAIROBI, The Kenyan government has suspended transportation of crude oil from the Turkana oil fields in the north west to Mombasa port, a distance of almost 1,000 kilometres, by truck until a Bill detailing how revenue from the commodity will be shared is enacted into law.
Energy Cabinet Secretary (Minister) Charles Keter says the government now plans to start the evacuation of crude oil in September if the Senate debates and passes the Petroleum Exploration and Production Bill.
The country was hoping to transport 2,000 barrels of crude oil daily to Mombasa using trucks, as the country awaits construction of a 200 billion shillings (about 1,93 billion US dollars) pipeline from Lokichar to the Port of Mombasa. However, after a number of setbacks, the government has finally suspended the plan.
Tullow Oil, the company developing the oilfield, says the cancellation will not affect its operations.
Last month Prime Fuels Kenya, Multiple Hauliers and Oilfield Movers were awarded a 1.5 billion shillings tender to transport the crude oil to Mombasa under the Early Oil Pilot Scheme.
Keter says shipments of crude oil are subject to the Senate passing the Petroleum Exploration and Production Bill which will set out how revenue from the commodity should be shared.
Source: NAM NEWS NETWORK