kilam
JF-Expert Member
- Aug 5, 2011
- 2,092
- 2,128
Kenyans should expect no revenues yet following Thursday’s announcement that the country was selling its first crude oil to China.
Petroleum principal secretary Andrew Kamau said the $12 million to be received from the sale will largely be used to cover for the expenses that the explorer and the government incurred in market testing for the crude, which is set to be exported later this month.
The PS, who had earlier revealed that Kenya had sold the crude oil to ChemChina UK Ltd, said a delegation of ministry officials will be heading to Turkana next week to explain to residents, through their leaders, what to expect from the maiden sale of Kenya’s crude.
“We will be meeting all the leaders next week to explain to them what the sale means because, as we have always said, the Early Oil Pilot Scheme is a market test and not necessarily a commercial venture,” Mr Kamau told the Sunday Nation.
The expenses to be recovered, according to him, include the cost of setting up the oil drilling machines, rehabilitation of storage tanks and expensive trucking of the crude that saw the pilling of 200,000 barrels headed for Beijing in two weeks.
The upfront cost recovery from the sale of oil means the EOPS may not yield any petrodollars until the project reaches full development in 2022.
The news may not be sweet music to Turkana residents, who on August 1 received with great joy an announcement by President Uhuru Kenyatta that Kenya had struck its first oil deal.
“I think we have begun our journey and it is up to us to ensure that those resources are put to the best use to develop our country to make it prosperous and to ensure we eliminate poverty in Kenya,” the President said, signalling possible revenue flows.
Turkana is ranked among the poorest counties in Kenya, according to the Kenya National Bureau of Statistics.
mobile.nation.co.ke
Petroleum principal secretary Andrew Kamau said the $12 million to be received from the sale will largely be used to cover for the expenses that the explorer and the government incurred in market testing for the crude, which is set to be exported later this month.
The PS, who had earlier revealed that Kenya had sold the crude oil to ChemChina UK Ltd, said a delegation of ministry officials will be heading to Turkana next week to explain to residents, through their leaders, what to expect from the maiden sale of Kenya’s crude.
“We will be meeting all the leaders next week to explain to them what the sale means because, as we have always said, the Early Oil Pilot Scheme is a market test and not necessarily a commercial venture,” Mr Kamau told the Sunday Nation.
The expenses to be recovered, according to him, include the cost of setting up the oil drilling machines, rehabilitation of storage tanks and expensive trucking of the crude that saw the pilling of 200,000 barrels headed for Beijing in two weeks.
The upfront cost recovery from the sale of oil means the EOPS may not yield any petrodollars until the project reaches full development in 2022.
The news may not be sweet music to Turkana residents, who on August 1 received with great joy an announcement by President Uhuru Kenyatta that Kenya had struck its first oil deal.
“I think we have begun our journey and it is up to us to ensure that those resources are put to the best use to develop our country to make it prosperous and to ensure we eliminate poverty in Kenya,” the President said, signalling possible revenue flows.
Turkana is ranked among the poorest counties in Kenya, according to the Kenya National Bureau of Statistics.
Kenyans to wait longer for oil money
Money received will go to Tullow Oil and the government to offset expenses incurred.
