Kenya sets up team to fast track oil production
Wednesday August 16 2017
An oil rig at Ngamia-1 site in Turkana County. PHOTO | FILE
Kenya has set up a team to fast track the development of the South Lokichar oil fields in Turkana County, with the hope of meeting its target of commercial exports by 2020.
The team appointed by the Ministry of Energy will work with Tullow Oil Plc to put in place pipelines and other production facilities in South Lokichar in northern Kenya. The team will also set up a crude export pipeline to the Lamu port on the Coast.
Energy Cabinet Secretary Charles Keter said the First Oil Technical and Commercial Working Committee will ensure that production facilities, licensing and environment safeguards in blocks l0BB and 13T oil fields in the South Lokichar basin meet global standards.
The committee of 32 comprises a commercial work group chaired by Daniel Kiptoo, a technical work group (upstream) and a technical work group (midstream).
READ: Kenya suspends early oil export plan
Committee
The commercial work group will deal with the financial aspects of the crude oil; the technical work group (upstream) will deal with exploration and production activities; and the midstream team will focus on the pipeline.
Mr Keter said the committee will negotiate commercial agreements between the government and contractors to secure Kenya’s interests.
“The mandate of the committee shall be to undertake such research and consultations, including government-appointed advisor, before finalising first oil technical and commercial agreements,” he said in Gazette No 7410.
Kenya is set to award contracts for environmental impact assessment of the pipeline route, engineering design of the export pipeline and building facilities from Turkana County to Lamu port for commercial oil to be sold overseas.
The committee will prepare and submit quarterly and annual reports to the Energy Cabinet Secretary. It will also invite external experts to review and advise on commercial or technical issues of the first oil project.
Mr Keter said that the committee will work with relevant government agencies on land access matters and advise accordingly, and oversee the implementation of technical and commercial agreements.