Kenya is now postponing its first crude oil export

Kenya's plan to export crude oil under the Early Oil pilot program (EOPS) has not been retained, as Tullow Oil pushed the date of the first delivery to June.

The project was launched in June 2018 and was to deliver the first shipment of 400,000 barrels in February of this year.

The British oil company said the new date was motivated by the fact that it had failed to transport 2,000 barrels of crude oil a day in the South Lokichar oil fields in northwestern Kenya for the first time. store at the Mombasa refinery.

Only 60,000 barrels were transported to the Kenya Petroleum Refinery Ltd depot in Changamwe, a move that continues to put the government's ambitions on the path of becoming the first East African country to export crude oil on hold.

In its latest commercial statement and operational update, Tullow Oil said: "Turkana crude oil road transport in Mombasa continues under the EOPS project, with an average of eight trucks shipped every two days, carrying approximately 600 barrels a day. "

The inability to meet the target set for February 2019 is a major setback for the controversial project, which, according to the government, is a necessary precondition for the full development and commercialization of the crude oil sector. .

The program, which has encountered many obstacles – literally after the local community has protested against the neglect of its infrastructure and security, amid disputes over the revenue-sharing formula – aims to prove Kenya's ability to export crude oil and to prepare the international full-production market.

According to Tullow, substantial progress has been made towards full production. The final investment decision made by the joint venture partners – the Government of Kenya, Africa Oil Corp and Maersk Oil – is expected to be reached later this year to secure large-scale exports in 2021., when a pipeline Crude oil to Lamu's shoreline should be ready.

"This will require several key milestones throughout the year, including land acquisition, commercial executives and contracting," the firm said.

To do this, the British company Wood Group must however complete the preliminary engineering and design work (Feed) of the pipeline Lokichar – Lamu, worth $ 2 billion, on time.

The feed, which will inform the 892 km pipeline specifications as well as the actual cost, is expected to be completed in the first quarter of this year. The environmental and social impact study is expected in the second quarter.

Failure to deliver these two critical reports on time could have an impact on contracts, construction of the pipeline and possibly further delay the crude oil export program.

While Tullow estimates he has made significant progress in Kenya in crude export, which is critical to recovering his mbadive investments, in Uganda, the company plans to sell its interests to the Total E & P joint venture and China National Offshore Oil Company (CNOOC). have remained in limbo since 2017 due to tax disputes with the Ugandan government.

"Tullow and its partners in Uganda continue to work with the government to finalize the start-up, which is expected to be completed in the first half of 2019," the company said.

Tullow will receive a cash payment of $ 100 million and a payment of approximately $ 100 million as repayment of pre-completion capital expenditures. An additional cash consideration of $ 50 million is due when IDF is taken.

Unlocking the stalemate will also give Ugandan crude operators the momentum to accelerate the construction of the Uganda-Tanzania Pipeline, which will begin in Hoima and end at Tanga Port in northern Tanzania.

Operators are considering a final investment decision in the first half of this year once the agreements with the Ugandan and Tanzanian governments are concluded.