Why govt cannot contract RV railways to ferry crude oil from Lokichar to Mombasa
11 October 2016, 09:25
Nairobi - The Principal Secretary in the State Department of Petroleum, Andrew Kamau has clarified that the quantity of crude oil produced at Lokichar in Turkana County would not be transported to Mombasa Refinery for export by train because it was not economically viable.
Kamau said only 2,000 barrels of oil will be delivered to Mombasa refinery daily, saying it would be economical to transport it by road.
“It cannot make economic sense to use railway to Mombasa owing to the fact that the quantity of crude oil so far produced is not sufficient to warrant such means of transport.”
He was responding to questions fielded by Journalists at a media breakfast meeting in Nairobi, who wanted to know why the Rift Valley Railways Company was not contracted to transport crude oil from Turkana to Mombasa Refinery where it would be reserved for export.
Kamau said Kenya targets to produce between 200,000 to 250,000 barrels of crude oil per day in the future, saying that will be the time the country will pride as an exporters of oil.
“At current oil prices, the oil produced is not expected to generate significant revenues. Early Oil Production Scheme enables Kenya to demonstrate oil sector development to key stakeholders, besides addressing logistical and execution challenges ahead of a very large project,” said Kamau in an engagement with the media professionals at a Nairobi hotel.
He said under the Early Oil Production Scheme (EOPS), a number of infrastructural projects were taking place in Turkana County which would go a long way in benefiting local businesses and communities.
He mentioned the increase in electricity connectivity to local households, capacity building for local communities to participate in the oil and gas industry and construction of roads as some of the important undertakings under EOPS.
The media breakfast meeting was organised by the Ministry of Energy and Petroleum to appraise journalists the progress made under the Early Oil Production Scheme.
Oil and Gas is one of the key strategic sectors within the Vision 2030 development programme. Since oil was first discovered in Kenya at Ngamia 1 in 2012, 30 wells have been drilled in the search for more oil, with an investment of close to Ksh150 billion in the sector.
Mr Kamau urged Journalists to report accurately and objectively about the efforts being made by stakeholders in the exploration of oil and gas in the country.
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