Kenya Signs Milestone Crude Processing Deal With Oil Firms

The Kenyan government has signed agreements with oil major Total, Tullow Oil < and Africa Oil Corp to develop a 60,000-80,000 barrels per day crude processing facility for oil discovered in the country’s northwest. Tullow and Africa Oil first discovered crude oil in the Lokichar basin in 2012, which Tullow Oil estimates contains an estimated 560 million barrels in proven and probable reserves. Tullow has said this would translate to 60,000 to 100,000 barrels per day of gross production. In addition to the processing facility, a crude oil export pipeline from Lokichar to Lamu on Kenya’s coast was also part of the deal.  Tuesday’s deal is a major milestone on the way to a final investment decision on Kenya’s first oil project, which Tullow aims to reach by the end of the year. It expects first full-scale oil production in 2022.SOURCE: REUTERS

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