Tullow's oil pilot expiration

Bleak future as Tullow’s oil pilot in Kenya expires

Tullow Kenya, together with its Joint Venture Partners, Total and Africa Oil has announced the expiry of the Early Oil Pilot Scheme (EOPS) contract, after running for two years.

In a statement, the UK oil firm and partners sad the IEOPS has served its purpose as a pilot project by providing critical technical data, logistical and operational experience and training that will materially assist the country and the Joint Venture Partners on the journey towards Full Field Development (FFD).

”The pilot scheme has allowed Kenya’s oil to be marketed and established on world markets. EOPS has given local entrepreneurs an opportunity to participate in crude oil transportation with a key focus on industry-safe practices.,’’ the statement read in part.

They said that in addition, critical local infrastructure, including local roads and the Kainuk Bridge, has been significantly improved as part of EOPS.

According to Tullow Oil Plc chief operations officer Mark MacFarlane, the pilot scheme has provided important lessons for the planning and execution of the Full Field Development phase of Project Oil Kenya.

”By producing, transporting, storing and exporting crude oil from Northern Kenya, the pilot scheme has provided proof of concept for oil production in Kenya,’’ MacFarlane said.

He added that the first export of crude oil from East Africa in 2019 was a historic achievement and clearly demonstrated the potential of Project Oil Kenya on world In August last year, President Uhuru flagged off the first-ever shipment of 200,000 barrels of crude oil from Kenya for Malaysia.

This after the UK-based Chinese company, ChemChina, bought the first batch of the Kenyan crude oil at Sh1.2 billion ($12 million). Kenya launched the IEOPS project in early June 2018 with President Uhuru Kenyatta overseeing the first truckloads of crude oil from the South Lokichar Basin in Turkana County to the coastal town of Mombasa about 1000 km away.

Initially planned for 2017, the pilot was delayed because of a dispute over revenue sharing between the central government and Turkana County communities.