Kenya sets up team to fast track oil production

Kenya sets up team to fast track oil production

Wednesday August 16 2017

email print

[https://www]

An oil rig at Ngamia-1 site in Turkana County. PHOTO | FILE

In Summary

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 committee of 32 comprises a commercial work group chaired by Daniel Kiptoo, a technical work group (upstream) and a technical work group (midstream).The committee will prepare and submit quarterly and annual reports to the Energy Cabinet Secretary.

Advertisement

[https://www]By KENNEDY SENELWA
More by this Author

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.

Kenya sets up team to fast track oil production

MY TAKE

What happened to much yalked oil export this year? [emoji23] [emoji85]



Sent using Jamii Forums mobile app

I believe there is a lot of literature out there that talks about why oil exports were delayed and with genuine reasons too...,use Google brother

I think this team is just an excuse for looting public funds...Apparently, we are a country that sets up teams that request alot of money only to do things that even a class one pupil can do...these teams get hefty financing and do very little...for instance, the govt formed a Nairobi Metropolitan team supposedly to deal with congestion and traffic flow called NAMATA...they were allocated millions of shillings as if coming up with a simple plan to ease congestion is like learning rocket science...now we are forming another one to 'fast track' oil exports...lol! we are being fooled here...
MY TAKE:
forming this 'team' is just an excuse to substantiate theft of public money...

Jay456watt said:

I think this team is just an excuse for looting public funds...Apparently, we are a country that sets up teams that request alot of money only to do things that even a class one pupil can do...these teams get hefty financing and do very little...for instance, the govt formed a Nairobi Metropolitan team supposedly to deal with congestion and traffic flow called NAMATA...they were allocated millions of shillings as if coming up with a simple plan to ease congestion is like learning rocket science...now we are forming another one to 'fast track' oil exports...lol! we are being fooled here...
MY TAKE:
forming this 'team' is just an excuse substantiate theft of public money...

Click to expand...

Here u answered like a man with brain...[emoji115]

Sent using Jamii Forums mobile app

After all is done the EAC will have to seek OPEC membership maana tz keii na ug wote watakuwa wazalishaji wa crudes, wajenge refineries sasa kwa ushirikiano

Sent using Jamii Forums mobile app

Jay456watt said:

I think this team is just an excuse for looting public funds...Apparently, we are a country that sets up teams that request alot of money only to do things that even a class one pupil can do...these teams get hefty financing and do very little...for instance, the govt formed a Nairobi Metropolitan team supposedly to deal with congestion and traffic flow called NAMATA...they were allocated millions of shillings as if coming up with a simple plan to ease congestion is like learning rocket science...now we are forming another one to 'fast track' oil exports...lol! we are being fooled here...
MY TAKE:
forming this 'team' is just an excuse substantiate theft of public money...

Click to expand...

So you want to tell that, the recommendations/reports given by formed teams and enquiry commissions are not used to take action normally in policy formulation??

Taking into consideration of cost encurred by the commission/team v/s both financial and economical internal rate of return ought to be achieved upon the implementation of recommendations given by the team/commission.

N'yadikwa said:

After all is done the EAC will have to seek OPEC membership maana tz keii na ug wote watakuwa wazalishaji wa crudes, wajenge refineries sasa kwa ushirikiano

Sent using Jamii Forums mobile app

Click to expand...

There is no reason for being built, for its absence Tanzania benefits from Uganda and next we expect Zambia, Malawi, Congo and others

Jay456watt said:

I think this team is just an excuse for looting public funds...Apparently, we are a country that sets up teams that request alot of money only to do things that even a class one pupil can do...these teams get hefty financing and do very little...for instance, the govt formed a Nairobi Metropolitan team supposedly to deal with congestion and traffic flow called NAMATA...they were allocated millions of shillings as if coming up with a simple plan to ease congestion is like learning rocket science...now we are forming another one to 'fast track' oil exports...lol! we are being fooled here...
MY TAKE:
forming this 'team' is just an excuse substantiate theft of public money...

Click to expand...

And yet, the same team of people who have been busy creating teams, swindling tax payers money, while ducking responsibility whenever possible are back to do the same thing again.

N'yadikwa said:

After all is done the EAC will have to seek OPEC membership maana tz keii na ug wote watakuwa wazalishaji wa crudes, wajenge refineries sasa kwa ushirikiano

Sent using Jamii Forums mobile app

Click to expand...

A reason discovering gas is more beneficial to industrialization than crude. See what Ferrostal n other cement n petrochemical firms r doing in Mtwara n Lindi.

However u should read this to know Uganda is smarter than Kenya as u r eyeing first crude export status in the region. Imagine from Lokichar to Mombasa via trucks!

HomeNewsUganda picks refinery investors

Buyende Woman MP wins election petition in...

Previous Story

[http://www]

[http://www]

Seek public opinion before action, Archbishop...

Next Story

Uganda picks refinery investors

By Admin

Added 9th August 2017 02:43 PM

The Government geologists estimate Uganda’s oil reserves at 6.5 billion barrels, of which 1.4-1.7 billion are considered recoverable.

[http://www]

President Yoweri Museveni with Jay Ireland (left), President and CEO GE Africa with Alexander Oketch of GE General Electric

Uganda said on Monday it had agreed preliminary terms with a consortium of investors, including General Electric to build and operate the country’s first oil refinery, reviving a much-delayed project.

The Government geologists estimate Uganda’s oil reserves at 6.5 billion barrels, of which 1.4-1.7 billion are considered recoverable.

The Albertine Graben Refinery Consortium, which also includes Yaatra Ventures LLC, Intracontinental Asset Holdings Ltd. and Italy’s Saipem SpA, was picked after a review of more than 40 companies, Uganda’s Energy Ministry said Monday in a statement.

The oil is due to start flowing in 2020 and the government is keen to build a refinery to process it and retain a larger slice of profit

Uganda has been seeking a new developer for the $4 billion facility since negotiations with groups led by Russia’s RT Global Resources LLC and South Korea’s SK Engineering & Construction Co. collapsed. GE has recently expanded in the industry by teaming up with Baker Hughes Inc., while Saipem, a $4.1 billion company based in Milan, has operated for more than 50 years.

“The risk to the project getting delivered is smaller because those companies are both very good at what they do,” Alan Gelder, vice-president of refining, chemicals and oil markets at consultants Wood Mackenzie Ltd., said by phone.

Gelder said it’s hard to estimate a cost for the project because Uganda doesn’t yet have all the infrastructure it needs to bring equipment into the landlocked country.

The government expects to conclude a project framework agreement with the developers over the next two months, according to the energy ministry.

“The consortium has proposed to government a financing approach and a path to establish, develop and operate a commercially-viable refinery company with a strategic benefit to the country and the region,” the ministry said. “The oil refinery is expected to spur growth of petrochemical and other related industries in Uganda.”

Energy and Minerals Development Minister Irene Muloni said in November that France’s Total, one of three oil explorers operating in the country, wanted to take up a 10 percent stake in the refinery project.

Uganda picks refinery investors


Sent using Jamii Forums mobile app