BLACK GOLD

State signs deal to develop mini crude processing plant

In Summary

• Tullow Oil, Total and Africa Oil Corp will develop a 60,000-80,000 barrels per day crude oil processing facility.

• Government and Tullow Oil had expected to start exporting crude under the Early Oil Pilot Scheme (EOPS) by June this year.

Tullow oil
Tullow oil
Image: FILE

The state has signed a deal with three oil exploration firms for the development of a crude oil processing facility.

The ministry of Petroleum and Mining yesterday announced on twitter it had partnered with Tullow Oil, Total and Africa Oil Corp for the development of a 60,000-80,000 barrels per day crude oil processing facility.

The ministry said on Twitter the Heads of Term agreements were for discoveries in Blocks 10 BB and 13T in South Lokichar Basin.

The announcement comes a month after British oil exploration firm Tullow obtained regulatory approvals from the National Environmental Management Authority to start small-scale crude oil production.

Government and Tullow Oil had expected to start exporting crude under the Early Oil Pilot Scheme (EOPS) by June this year but the company has only trucked about 88,000 of the 200,000 needed for the first shipment.

The oil that has been ferried to Mombasa was produced in 2015 during an extended well testing exercise.