Kenya and Ethiopia agree to construct joint crude oil pipeline
- Details
- Category: Oil & Gas
- Published on Thursday, 14 July 2016 11:53
- Written by Super User
- Hits: 2657
Kenya and Ethiopia have agreed on a deal that will see them construct a joint crude oil pipeline linking the two countries, this is after Uganda chose to export her oil through Tanzania’s Tanga port. The oil pipeline will run from Kenya’s coastal town of Lamu to Ethiopia’s capital city, Addis Ababa.
The deal was signed following billateral talks between President Uhuru Kenyatta Ethiopia’s Prime Minister Hailemariam Desalegn during his three day state visit to Nairobi. The deal is part of a joint infrastructure project to incorporate the region under the Lamu Port- Southern Sudan -Ethiopia Transport corridor (Lapsset).
Read more: Kenya and Ethiopia agree to construct joint crude oil pipeline
Washington To Help Kenya Raise $18 Billion For Oil Pipeline
- Details
- Category: Oil & Gas
- Published on Thursday, 21 April 2016 07:35
- Written by Super User
- Hits: 2154
The U.S. government says it will help Kenya get the financing it needs to build an $18 billion pipeline from the oil fields in the country's northwest to its southeastern Indian Ocean coast to help it become a net exporter of oil.
The pipeline would stretch nearly 500 miles from Lokichar in Kenya's Great Rift Valley to the coastal town of Lamu, and would be an almost impossibly expensive project for the East African nation. Yet there is enough oil there to make the plan worthwhile. The pan-African financial institution Ecobank Transnational Inc. says it has proven reserves of about 1 billion barrels of crude oil.
Read more: Washington To Help Kenya Raise $18 Billion For Oil Pipeline
Akiira project plans drilling start for two additional wells for June 2016
- Details
- Category: Oil & Gas
- Published on Friday, 08 April 2016 06:27
- Written by Super User
- Hits: 2147
Reported today from Kenya, Akiira Geothermal Ltd, a consortium developing a geothermal power project in Naivasha, Kenya, is planning to invest an additional Sh1.4 billion ($14 million) for the drilling of two additional wells for its 70 MW project.
Drilling of two more wells will start in June in Akiira Valley in Naivasha, The project last month received a Sh138 million grant from the African Union Commission.
Exploration drilling of the first well will start early June to be possibly followed by a second one at a total cost of $14 million (Sh1.4 billion), said Robert Bunyi, the outgoing chief executive of Akiira.
Read more: Akiira project plans drilling start for two additional wells for June 2016
Kenya would be among cheapest world oil producers, Tullow says
- Details
- Category: Oil & Gas
- Published on Tuesday, 05 April 2016 04:42
- Written by Super User
- Hits: 1958
NAIROBI: Kenya would be among the 10 cheapest countries to produce crude oil, ahead of major exporters like Nigeria and Angola. Tullow Oil, the UK firm prospecting for oil in Turkana among other areas, has reported the break-even point for Kenya crude is Sh2,550 ($25) per barrel – including the pipeline tariff to the sea port. Low production costs translate to higher profits for a producer. Kenya's projected cost is lower than $35.40 (Sh3,600) in Angola and Nigeria's $31.50 (Sh3,204), both countries bleeding money as global prices slumped to near-record low of $29 (Sh2,949) this week. At the prevailing prices, Kenya would still be making a profit if it were already producing and selling crude oil in the international markets.This is important news that suggests Kenya's oil is viable even at current low global prices albeit at a razor thin profit margin, said Eric Musau, a research analyst at Standard Investment Bank. He was quoting a presentation made by Tullow Oil after releasing its 2015 operating results. Being a low-cost crude oil producer could mean that Kenya can survive the sustained slump in prices, and still make a profit at the current levels.
Read more: Kenya would be among cheapest world oil producers, Tullow says