Cabinet okays ground work for production of 4,000 oil barrels daily

Posted on : Monday , 15th August 2016

In that effort, the Cabinet approved Sh3.2 billion for the upgrading of the Lokichar-Leseru road to smooth the way for the transportation of a projected 2,000 to 4,000 barrels of oil a day from the Turkana oil fields to Eldoret from whence the oil will be transported to Mombasa for refining.

“It is envisaged the crude oil will be transported by rail and road from Eldoret to Mombasa,” a press statement explained.

It also gave the green light for replacement of the Kainuk bridge in Turkana, “to allow for larger and heavier trucks to transport the crude oil.”

Ultimately however, the brief reminded, the plan is to transport the oil to Lamu, via pipeline as envisaged in the LAPSSET Corridor Project.

“Cabinet also approved the development of the Lokichar to Lamu Crude Pipeline which will be the main evacuation/transportation route for the Crude Oil from Kenya in the future.”

Kenya had initially planned to partner on the pipeline with Uganda which has tapped into its own oil reserves but the latter preferred to evacuate its oil through Tanga.

Kenya and Ethiopia are now exploring the possibility of having the pipeline link Lamu to Addis Ababa.

“The two leaders committed to finalise an agreement on the development and operation of a product oil pipeline from Lamu Port to Addis Ababa by the end of 2016,” Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed announced in June following bilateral talks between President Kenyatta and Ethiopia’s Prime Minister Hailemariam Desalegn.

At Thursday’s special meeting, the Cabinet also approved Ministerial Budget Priorities for the Financial year 2016/2017 and directed ministries to commence implementation immediately.

It was also briefed on the preparations for the forthcoming TICAD 6 Conference scheduled to take place in Nairobi later this month.