Kenya Targets $4.5 billion in Investment to Commercialize Crude
Image: Kenya Broadcasting Corporation
Kenya is seeking KSh500 billion ($4.55 billion) in investment for the development of pipeline, central processing and storage facilities from Lokichar to the coast – along with the upgrade of refineries in Lamu and Mombasa – according to Cabinet Secretary for the Ministry of Petroleum and Mining, H.E. John Munyes.
The emerging oil producer currently trucks its crude from Turkana to the coastal region, which impedes both commercialization and resultant economic growth.
“We tested market for our oil, and the oil is good. But Kenya suffers from one problem; our flow and average flow are weak in such a way that we cannot commercialize our crude oil with our current [infrastructure] capabilities,” said Munyes. “We could upgrade the refinery in Mombasa, which is currently being used to store our crude oil… We are also considering having a model refinery in Lokichar.”
The East African nation has been hailed as the next major oil producer in the region since discovering oil in Blocks 10BB and 13T in Turkana in 2012; yet it has not been able to achieve large-scale commercialization due to a lack of investment.
According to the Cabinet Secretary, the Kenyan Government is actively seeking to engage with private investors to fund infrastructural development, with multiple companies noting interest to date.