M a r k e t N e w s

Kenya gets into a Deal for First Ever Oil Development

Posted on : Thursday , 1st August 2019

Kenya has signed a Head of Terms agreement with joint venture partners, Africa Oil, Tullow Oil plc and TOTAL S.A for the very first development of an oil processing facility and a crude oil export pipeline.

The agreement signed by the Ministry of Petroleum and Mining on behalf of the government will see the oil majors build a 60,000 – 80,000 barrels per day (bpd) processing facility for oil identified in the country’s northwest and, a crude oil export pipeline to the coastal town of Lamu.
 
The landmark deals signed with the joint venture partners are for the discoveries of oilfields in Bock 10BB and 13T, specifically in the Amosign, Ngamia and Twiga fields.
 
Speaking during the signing in Nairobi, Kenya’s Ministry of Petroleum and Mining cabinet secretary, John Munyes, said that the agreements signed would support “a framework and commercial assurance required to move ahead with negotiating the fully termed upstream and midstream long-form agreements ahead of the projects’ final investment decision (FID).”
 
In the recent statement, Tullow oil said it now expects to see first oil three years after FID. The firm had told it would reach FID by the end of this year.
 
Keith Hill, President and CEO of Africa Oil, said, “We are very delighted with the signing of the Heads of Terms agreements as it marks an exciting step forward for the project.”
 
He said that the end of the negotiations around key fiscal and commercial principles is an important and major milestone towards a Final Investment Decision, enabling a solid development framework and confidence to all parties that the project is strong at low oil prices.
 
“We have absolute monetary certainty and we need to make sure that this project will be profitable for the Government of Kenya and for the international contractors at the current oil price uncertainty and low oil prices globally,” said Tullows Executive Vice President, Mark Macfarlane said in his earlier statement.
 
At a combined estimated cost of US$3 billion, the project will be the biggest single private investment in Kenya.

Source : www.expogr.com
Featured Companies
  • Bajaj Auto
  • Tire Group International, LLC.
  • /
  • TITAN Containers A/S
  • Your Banner HERE!

Complete List  

Advertisers in previous issue:

  • Manufacturer refrigerated-type air dryer, desiccant air dryer and compressed air in-line filter.
  • Kenya Engineer is a Journal of the Institution of the Engineers of Kenya
  • LINTEC doub- le screen technology and the worlds first asphalt mixing plant in 100% ISO sea containers.
  • Save your power bill by instaling servo voltage stabilizer.
  • Suppliers of generators for every application
  • Mini plants of toilet paper rolls production
  • Manufacturer & Trader of coil winding machines, toroidal coil winding machines, wire bunching machines, complete winding solution
  • Automatic brick manufacturing machines
  • Pumping solutions, a technological potential.
  • Pumps for dewatering, ground water control, sludge and slurry handling.
  • Manufacturing and marketing "aira" brand Valve Automation Products
  •  Ugur Seluloz Kimya A.S. is a leading Sodium Carboxymethyl Cellulose & Polyanionic Cellulose manufacturer, located in Turkey.
  • Multi feedstock batch processing biodiesel equipment
  • Lavorwash is a world-leader in manufacturing high pressure cleaners and vacuum cleaners for household and professional use.
  • Sonmez Makina Ltd. is a manufacturer and exporter company for filling systems of domestic use LPG cylinders.
  • Ducorr is engaged in the engineering, manufacture & deployment of cathodic protection systems and products.
  • Used Machinery
  •  EuropCorr is a company specialized in design, manufacturing, sales and consultancy of corrosion monitoring systems mainly for petrochemical, oil and gas industry.
  • Global Air Freight Solutions for Oil & Gas Shipments.
  •  Magazine for Africa
  • Catering for the most varied industrial storage requirements.
  •  K & S Financial Group is the link between the end buyer and a reputable Russian refinery.
  • VEGA Grieshaber KG is a world-leading supplier of level, switching and pressure instrumentation.
  • Bakery Equipment, Flour Mill, Bread Improver, Dried Fruit Processing machine
  • ISISAN is a core member of a group who employs, approx 2000 people and active in pipe manufacturing, furniture, machine made carpets, flour mill and animal feed production.
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2019 Afrotrade