Kenya to earn $1.2 Billion every year from oil

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The four trucks that were flagged off on Sunday by President Uhuru Kenyatta were officially received at the Kenya Petroleum Oil Refinery in Mombasa on Thursday.

Each carried 150 barrels of crude oil from Lokichar in Turkana County, 1,000 kilometres away.

Read: Four tankers with Turkana crude oil reach Mombasa

The KPRL storage tanks, which are being revamped at a cost of Sh200 million, will get 2,000 barrels a day.

The crude oil will be stored at the KPRL until the critical volume of 200,000 barrels is reached before export begins.

The improvement included modification and insulation of receipt tank 117, which has a capacity of 90,000 barrels. It also covered two adjacent truck unloading bays and a steam boiler for line heating and re-heating the crude oil trucks if necessary.

MORE THAN SH100 BILLION EVERY YEAR

Tullow Oil Managing Director Martin Mbogo said the sector could be raking in $1.2 billion (about Sh120 billion) annually.

The company that discovered oil in Turkana already has 80,000 barrels of crude oil ready for transportation to Mombasa.

It first discovered oil in Kenya in 2012 and since then, 40 wells have been drilled and the crude oil output is expected to hit 80,000 barrels a day by 2022.

“We are introducing a new economic sector in Kenya,” Mbogo said.

Petroleum and Mining Chief Administrative Secretary John Mosonik described the journey towards exporting oil in the country as "impressive and painful".

He said once everything is put in place, including upgrading the storage facilities in full by February 2019 as expected, the oil and gas sector will be the country's third highest foreign exchange earner after tea and coffee, and tourism.

The crude oil will be sold to the world oil market as the country actively seeks a particular buyer.

“In future, we are looking at upgrading the KPRL facilities so that we can add value to our crude oil,” Mosonik added at the KPRL facilities.

The CAS said four trucks will trucks will transport the oil for now but that the number will increase to 100 a day with time, translating to more jobs for youths in the country.

The crude oil is part of the Early Oil Pilot Scheme launched by Uhuru. The scheme wil see the Lokichar-Lamu pipeline completed and this will be able to transport about 80,000 barrels of crude oil a day.

KPC EMPLOYEES TO KEEP JOBS

Pipeline company chair John Ngumi said it has spent close to Sh3 billion in the partnership programme with KPRL.

“We have spent Sh1 billion on the operations of the KPRL including salaries and the like, another Sh200 million on improving the facilities to receive the crude oil and another Sh1.8 billion on the improvement of other facilitiesint he area,” said Ngumi.

Acting KPRL CEO Charles Nguyai said the company has many assets that can be used by the government to develop the new sector.

“We are also willing to do whatever we can to help the government to achieve its objectives,” said Nguyai.

There was also good news for KPRL staff who have been living in fear of being rendered jobless.

Mosonik said they will retain their jobs.

The refinery was shut down in 2013 following what the government termed ineffectiveness and inefficiency. Operations resumed in 1963
 
Point of correction
Kwanza $1.2 bil hiyo total revenue, sio hela inayoenda yote serikalini
Pili ,jifunzeni kuongeza thamani ya bidhaa zenu kabla ya kuuza nje,jengeni refinery kwanza, kwani sh ngapi?
Tatu,sisi hatuzalishi mafuta lkn naona tutakuwa tunatengeneza hela nyingi kuliko nyie kwa kupitisha mafuta nchini kwetu
 
maumivu kama kawaida hebu tuambie gold yenu anaingiza pesa ngapi kwa nchi yenu(shamba la bibi).
 

Revenue will depend on oil prices. The trend currently is going up.
It will also depend on whether we discover new blocks, which is a very high possibility.
Refinery is $3 billion upwards.
How will you make more money from our oil yet you're making madafu money from your own Tanzanite?
 
tulia....hii ni pilot phase tu ambayo ni production of only a few barrels per day (plus an oil pipeline is yet to be constructed)...once full commercialization commences in 2021, hata hii $1 billion ni pocket change nakwambia...oil exports could rake in as much as $3 billion dollars with a capacity of 200,000 barrels per day depending on global oil prices...
 
atakuambia tanzanite inatengeneza hela nyingi kumbe 30 million tu...by the way $1.2 billion dollars is equivalent to Kenya's tourism revenues and this is just the pilot phase for oil production...if they put this money into good use, it might be a breakthrough for the Turkana ppl and kenya as a whole
 
Kwa vijitone mlivyo navyo pengine mngefaidi zaidi kama mngejenga refinery kwanza....
Think how much market you would have in Africa alone!
 
Amesema Kenya to earn haja specify ni nini, wewe ndiye ukona kiherehere.
 
Kwa vijitone mlivyo navyo pengine mngefaidi zaidi kama mngejenga refinery kwanza....
Think how much market you would have in Africa alone!
A journey of a 1000 miles begins with one step. Shugulika barriks and acacia gold kwanza.
 
as an african nafurahi kusikia africa inasonga mbele kwa kasi..regardless maendeleo hayo ni mozambique ethiopia, Tanzania, Rwanda ama Kenya..we should all strive to make it to the top..if others have found the path to wealth why not Africa?us? In fact as Africans we should be plotting kuvuta rasimali kutoka kwa watu weupe kuja kwetu including sending over strong and dedicated young men to impregnate white women (look at baraka obama ,Mousa Dembélé,Mathis Bolly,Kevin-Prince and Jerome Boateng,Memphis Depay,Peter Odemwingie,Maxim Choupo-Moting,Vicent Kampony et etc) this way someway somehow the money will return to the mother continent...
 
Ahhha hahaha hizo ni kelele tu,najua mafisadi papa wa Kenya wanaangalio ni aje watapa slice yao
😀😀😀😀hizi ni dalili za mwenye wivu... ok mafisadi lazima watameza ila nina uhakika baada ya kuanza full commercialization kutabadilika hata kama ni kwa kiasi...especially kule turkana ambapo kwa muda mrefu wamekuwa wakitengwa na serikali...$1 billion kwa hii pilot phase sio hela kidogo...
 
Sikatai mkuu ,$ 1 bil ni mpunga mrefu sana,hiyo ni hela ambayo kwa miaka mitano kwa baadhi ya nchi za kiafrika inaweza maliza hata tatizo la maji completely,maoni yangu ni kuwa makini na manyang'au yanayovuna bila kupanda
 
Sikatai mkuu ,$ 1 bil ni mpunga mrefu sana,hiyo ni hela ambayo kwa miaka mitano kwa baadhi ya nchi za kiafrika inaweza maliza hata tatizo la maji completely,maoni yangu ni kuwa makini na manyang'au yanayovuna bila kupanda
nakubaliana nawe mkuu....yaani ufisadi tu ndio unatuangamiza waaafrika
 
Maskini bongo kumbe hata gas hakuna ni mvuke tu wawekezaji ndo wanafungasha virago. Ni bora tujikite kwenye agro industries tourism ufugaji na transportation tu maana ndo tuna comperative advantage
 
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