Your Oil is now ready to be sold

British oil exploration company Tullow has started the search for buyers of Kenya’s small-scale crude petroleum exports ahead of the first shipment expected in the next four months.The UK multinational, in a trading update filed Wednesday at the London Stock Exchange, said it had received interest from unnamed potential buyers of the Turkana commodity. “Tullow has begun to market Kenya’s low-sulphur oil ahead of this first lifting with initial market reactions being very positive,” Tullow said in a statement. The company has spent more than $1 billion (Sh100 billion) to prospect for oil and develop wells.

The exports are intended to test the international markets’ reception to Kenya’s crude discoveries ahead of commercial production projected to start in about three to four years. Petroleum Principal Secretary Andrew Kamau had in 2017 told the Business Daily that buyers from Europe, China and India had expressed interest in buying Kenya’s oil, but declined to disclose their identities.  More than 70,000 barrels of oil have so far been transported by road to Mombasa where they are being stored. Tullow uses trucks to move about 600 barrels per day, with the volumes expected to rise to 2,000 barrels of oil per day from April.

“In 2019, several critical tasks must be completed to reach a Final Investment Decision by year-end,” the company said.“These tasks include completing commercial framework agreements with the Government of Kenya and finalizing (project planning) studies in the first quarter of 2019 and concluding agreements over land title and water supply with the Government of Kenya and submitting both the upstream and the mid-stream environmental social impact assessments (ESIAs) in the second quarter.”

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