{"id":4856,"date":"2016-07-25T10:22:30","date_gmt":"2016-07-25T10:22:30","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4856"},"modified":"2017-01-24T20:57:10","modified_gmt":"2017-01-24T20:57:10","slug":"kenyas-early-oil-project-fid-could-be-out-this-week","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/kenyas-early-oil-project-fid-could-be-out-this-week\/","title":{"rendered":"Kenya\u2019s Early Oil Project FID Could Be Out This Week"},"content":{"rendered":"

The South Lokichar final investment decision on the early oil project by block operator Tullow Oil could be out by Wednesday as the company releases the 2016 Half Year Results.<\/p>\n

Tullow Oil had in May<\/a> through their\u00a0director of government, public affairs and communications Anthony Mwangi said that the decision would be out either between the months of June and July ahead of the planned exports through road and rail in July 2007.<\/p>\n

The project which many experts expect will be loss making going by the current oil prices according to Tullow Oil would enable the country acquire knowledge on how to access markets with factors such as refineries to be contracted to refine the waxy oil once full production commences.<\/p>\n

\u201cProjected breakeven price for the blocks in Kenya previously ranged between USD 37\/bbl and USD 42\/bbl but in light of emerging information, break even prices could be in the range of USD 45\/bbl \u2013 USD 49\/bbl,\u201d according to a new report by KPMG<\/a>.<\/p>\n

According to parties involved in the project Kenya will star by transporting 2000 barrels a day<\/a> to Mombasa where it will be stored at the now shut down refinery until it accumulates to about 600,000 barrels after which it will be shipped out.<\/p>\n

To date contractors to be involved in the road transportation have not been identified although Maersk<\/a> which is also a joint venture partner in the blocks as well as a renowned logistics provider is thought to be a front runner. Damco Kenya, Maersk a fully owned onshore logistics subsidiary could play an important part on the road transport while Maersk participate in shipping.<\/p>\n

It is estimated that the transportation by road and rail will cost the country around $18 per barrel while the pipeline tariff is estimated at $12.94 according to regional consultancy firm KPMG. A joint pipeline by Uganda and Kenya was estimated to cost the latter just $7.70.<\/p>\n

\u201cIn many ways, for Kenya forging ahead separately is nearly inevitable because undeveloped petroleum reserves are not quite as useful to a nation seeking to achieve double digit GDP growth along with significant improvements in access to public goods and services. But the economics have to work,\u201d the report says.<\/p>\n

The early oil project is however tentative as it will play a temporary part before the country completes its pipeline from the South Lokichar fields to the Lamu port via Isiolo expected to come on-stream by mid 2021.<\/p>\n

The pipeline will be heated to 80 degrees will run underground from the Lokichar oilfields to the Kenyan coast before being transported for loading using an 8 kilometer underground pipeline offshore.<\/p>\n","protected":false},"excerpt":{"rendered":"

The South Lokichar final investment decision on the early oil project by block operator Tullow Oil could be out by Wednesday as the company releases the 2016 Half Year Results. … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":4857,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[4706,4705,3735,1252,1347,1476,2042,4707,2377,2571],"class_list":["post-4856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-damco-kenya","tag-early-oil-project","tag-final-investment-decision-fid","tag-kenya","tag-kpmg","tag-maersk","tag-pipeline","tag-pipeline-tariff","tag-south-lokichar","tag-tullow-oil","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/07\/truck-ransport.jpg?fit=1383%2C634&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1gk","jetpack-related-posts":[{"id":6975,"url":"https:\/\/www.oilnewskenya.com\/index.php\/feed-contract-south-lokichar-awarded-may\/","url_meta":{"origin":4856,"position":0},"title":"FEED Contract for South Lokichar To Be Awarded by May","author":"","date":"April 25, 2018","format":false,"excerpt":"Tullow Oil has announced that the upstream baseline data collection for the environmental and social impact assessment (ESIA) has commenced and the front end engineering design (FEED) contract is expected to be awarded this month as the pre development phase for the South Lokichar fields proceeds. The pipeline ESIA work\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/02\/Lokichar-Development-Concept.png?fit=642%2C474&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/02\/Lokichar-Development-Concept.png?fit=642%2C474&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/02\/Lokichar-Development-Concept.png?fit=642%2C474&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7723,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-joint-venture-partners-sign-heads-of-terms-agreements-for-development-of-the-south-lokichar-basin\/","url_meta":{"origin":4856,"position":1},"title":"Kenya Joint Venture Partners Sign Heads of Terms Agreements for Development of the South Lokichar Basin","author":"","date":"June 26, 2019","format":false,"excerpt":"Heads of Terms agreements with the Government of Kenya and joint venture partners, Africa Oil, Tullow Oil plc and TOTAL S.A. have been signed for the development of the oil fields in the South Lokichar Basin. The Joint Venture Partners and the Government of Kenya have concluded negotiations around key\u2026","rel":"","context":"In \"Heads of Terms Agreements\"","block_context":{"text":"Heads of Terms Agreements","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/heads-of-terms-agreements\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/HOT-Signing.jpg?fit=1200%2C900&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/HOT-Signing.jpg?fit=1200%2C900&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/HOT-Signing.jpg?fit=1200%2C900&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/HOT-Signing.jpg?fit=1200%2C900&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/HOT-Signing.jpg?fit=1200%2C900&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4722,"url":"https:\/\/www.oilnewskenya.com\/index.php\/south-lokichars-final-investment-decision-to-be-out-by-august-tullow-oil\/","url_meta":{"origin":4856,"position":2},"title":"South Lokichar\u2019s Final Investment Decision to be out by August – Tullow Oil","author":"","date":"May 26, 2016","format":false,"excerpt":"The final investment decision for the early oil pilot scheme in Kenya\u2019s oil rich South Lokichar basin is expected to be out either between the months of June and July according to Tullow Oil\u2019s director of government, public affairs and communications Anthony Mwangi at the ongoing 2nd Turkana Oil and\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/02\/KE-1316-Etuko-1-Marriott-PR46-Rig-2429-3.jpg?fit=512%2C768&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7549,"url":"https:\/\/www.oilnewskenya.com\/index.php\/agreements-over-land-title-water-supply-key-to-reaching-lokichar-fid-by-end-of-2019-tullow-oil\/","url_meta":{"origin":4856,"position":3},"title":"Agreements Over Land Title & Water Supply Key to Reaching Lokichar FID By End of 2019 \u2013 Tullow Oil","author":"","date":"February 13, 2019","format":false,"excerpt":"KENYA Block 10BB and 13T operator Tullow Oil has listed concluding agreements over land title and water supply with the Government of Kenya as among the key tasks that the company is focused on in order to reach a Final Investment Decision by year end. 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According to State House the partners\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Tullow-Oil-JV-Partners-State-House-Nairobi.jpg?fit=960%2C640&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Tullow-Oil-JV-Partners-State-House-Nairobi.jpg?fit=960%2C640&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Tullow-Oil-JV-Partners-State-House-Nairobi.jpg?fit=960%2C640&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/10\/Tullow-Oil-JV-Partners-State-House-Nairobi.jpg?fit=960%2C640&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":7936,"url":"https:\/\/www.oilnewskenya.com\/index.php\/are-tullow-oil-total-bailing-out-of-kenyas-oil-project\/","url_meta":{"origin":4856,"position":5},"title":"Are Tullow Oil & Total Bailing Out of Kenya\u2019s Oil Project?","author":"","date":"January 27, 2020","format":false,"excerpt":"According to reports emanating from France last week Tullow Oil the operator of blocks \u00a0Blocks 10 BA, 10 BB and 13T in the South Lokichar Basin the company together with its JV partner Total seeking for a partial or total equity change in their acreage sending mixed messages in the\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/IMG-20171012-WA0083.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/IMG-20171012-WA0083.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/IMG-20171012-WA0083.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/IMG-20171012-WA0083.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/IMG-20171012-WA0083.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4856"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4856\/revisions"}],"predecessor-version":[{"id":4858,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4856\/revisions\/4858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/4857"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}