Kenya to make its first shipment of crude oil in June 2019

Recent Discoveries Show Very Impressive Results in the region, asserts EAC Official

 East African Community Headquarters, Arusha, Tanzania, 8th May 2019: Kenya’s Cabinet Secretary for Petroleum and Mining, Hon. John Munyes on Wednesday 8th May 2019 graced the official opening of the 9th East African Petroleum Conference and Exhibition 2019, themed East African Region - the destination of choice for Oil and Gas Investment Opportunities to enhance Socioeconomic Transformation.

The Cabinet Secretary disclosed that Kenya was on course with the discovery of oil and the country is expected to ship its first 200,000 barrels of crude oil in June 2019 after hitting the 200,000-barrel mark set by the government for it to be able to ship out the product. The Cabinet Secretary also disclosed that Tullow Oil had so far transported 87,000 barrels of crude oil to the refineries storage tanks in Mombasa. 

According to Hon. Munyes, Kenya has a total of 94 wells of oil that have been drilled, 63 exploration blocks that have been gazetted, 276 blocks licensed and 36 blocks open to investors, adding that “the government was constructing a 820km 20-inch diameter, South Lokichar – Lamu Crude Oil pipeline that will connect Turkana to Lamu Port, which will be operational by 2022”.

The Cabinet Secretary revealed other major petroleum infrastructure that have been put in place/or their construction is ongoing. These include the 450km, 20-inch diameter multi-product Line 5 from Mombasa to Nairobi, which has been completed; construction of four tanks of 133,000 cubic metres in Nairobi to ensure adequate storage of products coming through Line 5; the 122 km, 10-inch diameter multi-product line from Sinendet to Kisumu; and completion of the Kisumu Oil Jetty.

Hon. Munyes called upon investors to come to the EAC not only to invest in the Oil and Gas sectors but also to support the Partner States. “There are challenges in this area and we really need your support” noted the Cabinet Secretary.

On his part, the Tullow Oil Executive Vice President for East Africa, Mark MacFarlane disclosed that Tullow Oil had invested $2 billion in Kenya, and it was upbeat that they will hit the 200,000 barrels required for shipment. Tullow discovered crude oil in Uganda in 2006 and later in Kenya in 2012 but no exports have been made.

Addressing delegates, on behalf of the Secretary General of the East African Community, Amb. Liberat mfumukeko, the Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo, noted that a few years ago, the East African region did not attract significant investments in the oil and gas sector but today, the region had benefited from advances in technology and management of exploration and production, which has led to the discovery of commercially viable oil and gas deposits.

“Recent discoveries were very impressive; Uganda has 6.5 billion barrels of oil and 500 Billion cubic feet (Bcf) of gas; Kenya 754 million barrels of oil, Tanzania 57.25 Trillion cubic feet (Tcf) of gas, Rwanda 63 billion cubic metres of methane gas and huge commercial reserves in South Sudan, and reports at hand indicate that exploration process in Burundi is also on going and that it has reached an advanced stage”, disclosed the EAC official.

The Deputy Secretary informed the delegates that the ongoing event aims at fulfilling one of the objectives of the Community enshrined in chapter 19, article 114 of the EAC Treaty and article 40 of the EAC Common Market Protocol of promoting sustainable utilization of the natural resources of the Partner States and putting in place measures that would effectively protect the natural environment of the Partner States.

Hon. Bazivamo said that exploitation of Petroleum resources on the Continent, had certainly not achieved the intended socio economic transformation, hence, “we have the obligation to draw lessons and ensure we are better off in the EAC region”.

Since the inception of the EAPCE in, impressive achievements have been reported in every subsequent conference and I am happy to report that the EAC Partner States have established clear, harmonized, stable, regulatory, legal and fiscal frameworks that are supporting the achievements and developments in the sector.

At the Conference, Uganda’s Minister of Energy and Mineral Development, Hon. Eng. Irene Muloni launched Uganda’s second open competitive licensing round in respect to Petroleum exploration, development and production in Uganda.

At the launch, Hon. Eng. Muloni disclosed that the licensing round covers five (5) Exploration Blocks in the Albertine Graben, which is the most prospective area of exploration, development, and production in Uganda. The Blocks are:-LR2_2019_Block01 (Avivi), area coverage of 1026km2; LR2_2019_Block02 (Omuka), area coverage of 750km2; LR2_2019_Block03 (Kasuruban), area coverage of 1285km2; LR2_2019_Block04 (Turaco), area coverage of 637km2; and LR2_2019_Block05 (Ngaji), area coverage of 1230km2.

The Minister hailed President Yoweri Kaguta Museveni for his visionary leadership and strong guidance he has given to the sector since 10th February 1986. She also commended the EAC Partner States for the support they have provided in facilitating the development of the oil and gas sector in Uganda and the region at large.

The licensing round was driven by a number of factors including, among others, the establishment of additional resources and reserves to the current confirmed 6 billion barrels of oil out of which about 1.4 billion barrels are recoverable, and 500 billion cubic feet of non-associated gas; and existence of comprehensive and robust legal, regulatory and institutional frameworks which guarantee certainty to investors. The second launch follows the first licensing round through competitive bidding undertaken in 2017.

Uganda made its first commercial oil discovery in 2006. To date, over 121 wells have been drilled with a success rate of over 88%. Preparations are under way to commence production following the issuance of production licenses to Total E&P Uganda B.V, Tullow Uganda Operations Pty Ltd, and CNOOC Uganda Ltd. The commercialization of the oil in Uganda will involve export of part of crude oil by the East Africa Crude Oil Pipeline through Tanga Port in Tanzania.

The 9th East African Petroleum Conference and Exhibition 2019 is being attended by Ministers in charge of the sectors in the Partner States; Honorable Members of East African Legislative Assembly; Honorable Members of National Parliaments; Members of the Diplomatic Corps, Development Partners and investors; Petroleum Sector Business Community; and Members of the EAC Regional Petroleum Conference and Exhibition Steering Committee.

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The Ugandan Minister of Energy and Mineral Development, Hon. Eng. Irene N Muloni is scheduled to launch the country’s second licensing round during the African Petroleum Conference & Exhibition (EAPCE’19) on first day, 8th May 2019 at 1330hrs in Pride Inn Paradise Beach Resort & Spa in Mombasa, Kenya. 


Five (5) Exploration Blocks ranging from 400 to 1300 km2 are expected to be launched for this licensing. Extensive data is available on the blocks including seismic and well data. The licensing round follows the first licensing round through competitive bidding which was successfully undertaken in 2017.


Uganda made its first commercial oil discovery in 2006. To date, over 121 wells have been drilled with a success rate of over 88%. Preparation are under way to commence production following the issuance of production licenses to Total E&P Uganda B.V, Tullow Uganda Operations Pty Ltd, and CNOOC Uganda Ltd. Commercialization of the oil will involve export of part of crude oil by East Africa Crude Oil Pipeline through Tanga Port in Tanzania.


Part of the oil will be refined in-country to meet the national and regional demand for refined products. This planned second licensing round is therefore partly driven by the need to establish additional petroleum resources and reserves to the current resource base in the country to ensure sustainability of oil production. More details on Uganda’s oil and gas sector will be availed during the launching of the licensing round.


The Ministry of Energy and Mineral Development, Uganda therefore cordially invites you to the launching of its second licensing on 8th May 2019 at Pride Inn Paradise Beach Resort &Spa in Mombasa, Kenya during the EAPCE’19 Conference.

East African Community Secretariat, Arusha, Tanzania, 26th October, 2018:The 9th East African Petroleum Conference and Exhibition 2019 (EAPCE’19) will be held from 8th to 10th May, 2019 at the PrideInn Paradise Beach Resort, Convention Center and Spa in Mombasa, Kenya.  

 The conference organized by the East African Community (EAC) Secretariat and the EAC Partner States is expected to attract more than 1,000 participants.

The 2019 edition of the biennial conference under the theme, East African Region: The Destination of Choice for Oil and Gas Investment Opportunities to Enhance Socioeconomic Transformation, aims at promoting the region’s petroleum potential and investment opportunities. The last eight Petroleum Conferences have proven a valuable forum for governments and petroleum industry players from around the world to dialogue.According to the EAC Secretary General, Amb. Liberat Mfumukeko, while the conference provides a forum for dialogue for all players in the Petroleum industry regionally and internationally, the 2019 edition of the Conference is also in line with the EAC Vision 2050 that aims to transform the region into an upper-middle income region by the year 2050.

"Energy is one of the vital infrastructure 'enablers' of EAC Vision 2050 and the level and intensity of commercial energy use in the region is a key indicator of the degree of economic growth and development,” added the Secretary General.

Held since 2003, the East African Petroleum Conferences have provided increasing awareness of the potential for petroleum production in the region and other important issues in the petroleum sector, including technological advancements in exploration, development and production.

Delegates can expect high quality technical presentations, exhibitions from a wide spectrum of players from the petroleum sector. The conference programme integrates field excursions to selected sites in each Partner State for delegates to see the rich geological variety that the region possesses as well as the tourist attractions that the region is well known for.

EAPCE'19 will take place at a time when the EAC has embarked on a journey to implement the Vision 2050. The objective of the energy sector development under the EAC Vision 2050 is to ensure sustainable, adequate, affordable, competitive, secure and reliable supply of energy to meet regional needs at the least cost. By 2050, the region’s target is to transform the energy landscape to be characterised by efficient distribution of petroleum products with sufficient strategic reserves.


Important Conference Dates:

Event

Date

Open Submissions of Abstracts

1stOctober, 2018

Open Registration

30thOctober, 2018

Abstract Submission Deadline

31stDecember, 2018

Notification of Acceptance

28thFebruary, 2019

Exhibition Booth Hire Deadline

30th April, 2019

Conference Start

8th May, 2019

Conference End                                                                                                               March

10th May, 2019

For more information on EAPCE’19, visit the conference website: www.eapce19.eac.int

 

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For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania. 

The EAC Secretariat is ISO 9001:2008 Certified