Kenya eyes Sh150b Turkana oil revenue
SEE ALSO :Ketraco boss gets new termTullow Oil computed anticipated revenues using a price of $55 (Sh5,500) per barrel. Currently, Brent Crude is going for $66 (Sh6,600) per barrel. “We will be pushing 80,000 every day of the week, assuming the price of $50 per barrel – today it is upwards of $60 a barrel – and that number will get to $1.5 billion,” Tullow Oil Kenya Managing Director Martin Mbogo said yesterday in Nairobi during an update on the project. The revenues are, however, exposed to the volatility of global oil prices. Prices sunk to $28 (Sh2,800) per barrel in January 2016 and eight years earlier were at an all-time high $147 (Sh14,700) in July 2008. Petroleum Principal Secretary Andrew Kamau said the ministry and Tullow Oil would next week meet potential buyers of oil produced under the Early Oil Pilot Scheme (EOPS). He said a number of refineries already have samples of the Kenyan crude and are expected to give their feedback next week on the sidelines of an oil meeting in London.
SEE ALSO :UBA Kenya profit up 185 per cent“We have sent a brochure with the specifications of the crude oil out to various companies and next week, we will meet with the companies that feel they can run the Kenya crude,” said Mr Kamau. “We will sit down with them and find out what kind of price they are prepared to pay, whoever gives us the best price will be the company that we will ship the crude to.” While Tullow Oil did not disclose the profits it would be making, past projections have shown the breakeven point to be at $34. Mr Mbogo said at $50, investors would get a “decent return on investment”. The project is expected to cost about $3 billion (Sh300 billion) in a mix of debt and equity.
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