Wednesday, September 20, 2017

Staff Mail

Custom Adv 1
  • The Crude Oil is the raw material for fuel
  • Currently 68,000 barrels of Crude Oil have been pumped out of the Lokichar reserves and stored in tanks.
  • According to Tullow Oil and Africa Oil, an estimated 750 million barrels of crude oil is still to be extracted from the Turkana wells.
  • The Crude Oil is a sticky which needs to be liquidified before transportation. Steam injections are therefore connected into these tanks where crude oil is stored.
  • The steam will be released at a certain temperature into these tanks to liquidify the oil before being transferred to ISO tanks which will be loaded on tracks for transportation.


Transportation of the Crude Oil
1. Initial years of extraction
(ROAD AND RAIL)
 The Early Oil Pilot Programme will involve transportation of the crude oil by road through tracks from Lokichar to Eldoret rail hub and thereafter using wagons from Eldoret to Kenya Petroleum Refineries Company (KPRL) in Mombasa. This shall take place from 2017-2019.
 The tanks in KPRL are being rehabilitated in readiness for crude oil which will be stored for a while before being exported.
2. Later years of extraction
(CRUDE OIL PIPELINE)
 By 2019-2020, Kenya will be able to transport the oil by pipeline. From the facility, a series of pumps will be fitted to the pipeline to an 891km journey through the Northern corridor to the Lamu Port.
 These pipelines are still in the designing stages with USD 4.5 billion estimated cost
 The pipeline is expected to transport 100,000 barrels a day. Road transport shall be used till the pipeline is complete

Conflict of Interest

Kenya was banking on a transnational pipeline from Uganda through Loima, the Northern Corridor to Lamu port but these plans slipped out of Kenyan’s plans after Uganda opted for the Tanzanian route.
Kenya will still continue to develop the pipeline to take the commodity from Turkana and other potential areas out to sea and into the market
The Ministry of Energy signed An Oil and Gas Memorandum of Understanding (MOU) with Ethiopia so as to build the pipeline together from Lamu on the refined products to supply all the way to Moyale, Hawaza and Adis Ababa.
Conclusion
Early Oil Pilot Scheme (EOPS) will act as a stimuli for critical infrastructure development in Turkana and Kenya at large. It enables the Government of Kenya to show development of Kenyan Oil fields to key stakeholders and financiers- the relatively small scale addresses logistical and execution challenges ahead of a very large project.
What we want to achieve as an economy, is the lowest cost of fuel. The start of oil production in Kenya in 2017 offers long term prospects to diversify the Country’s Economy. With the vision of becoming a middle-income economy, Kenya can fuel its growth, create employment and create revenues for investment.
Early Oil Pilot Scheme will improve economic and social development in both Gross Domestic Product (GDP) and Gross National Product (GNP). In addition, it will enable the country to compete globally in market structure, infrastructure, level of education and reduce unemployment.
Kenya is heading in the League of (OPEC) Organization of the Petroleum Exporting countries having the capacity to produce oil for the country and other countries. Vision 2030 is expected to be achieved with the discovery of oil which will boost the economy financially.

 

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