Kenya does not expect to generate any profits from early oil production, with the first refined product set to be available in October 2017. Trucking of crude oil from Turkana County could start in June, the Government has said, but the commodity has to be accumulated to fill a ship – which would take at least four months. With the prevailing global prices that have remained below $50 (Sh5,000) since March last year, the initial production might not be profitable. Energy and Petroleum Ministry Permanent Secretary Andrew Kamau has said there would be no profits from initial oil production should the prevailing prices continue. “At current oil prices, we do not expect to make much money, so there is no money to be shared,” Mr Kamau said yesterday in a status update on oil development. He added that the production to begin next year under the Early Oil Pilot Scheme (EOPS) was intended to convince investors and financiers of the viability of the fields. “[Kenya] needs oil prices to be about $55 (Sh5,500) per barrel to move into full-field development,” Mr Kamau said, quoting experts, including the main investors in the Turkana basin, Tullow Oil and its partners.
Alleastafrica and Standard digitaal