Kenya to ship out first consignment of crude oil in two months

NAIROBI, Kenya plans to ship out its first consignment of crude oil in two months. The 200,000 barrels of crude oil will be sold to a refinery that offers the highest price.

Petroleum Principal Secretary Andrew Kamau has said Tullow Oil is also expected to start the mining of the commodity next week after trucking 88,000 barrels to the storage facility in Mombasa.

Kenya will taste its first petrol dollar in two months selling over 200,000 barrels of oil to the world.

The government and Tullow Oil officials are currently touring various refineries in Australia, Asia and India.

Kenya will settle for the highest bidder, and has set a minimum price target of 50 dollars per barrel.

Petroleum Principal Secretary Andrew Kamau has said Tullow Oil is also expected to resume oil mining next month as it seeks to increase the stored commodity from 88,000 barrels by July.

The company plans to mine an average of 2,000 barrels per day. The PS further says the ministry has received the environment assessment license from the National Environment Management Authority charting way for commercial exploitation of the commodity.

Global crude oil prices have been unstable in the last one year due to political and production uncertainty in oil producing countries.

A barrel of the commodity is pegged at 70 dollars from 100 dollars two years ago.

Kenya is hoping the price of crude oil will be stable by the time the country starts commercial export in the year 2022.

Source: NAM News Network