KENYA HOPES TO BREAK EVEN WHEN SHIPPING BEGINS
Kenya sees the break-even price of its crude oil at between $50 (Sh5,062 ) and $55 (Sh5,568 ) per barrel( 49 litres) when shipment begins next June – the same time it hopes to start Full-Field production. This will be preceded by Early Oil Pilot Scheme – which includes trial transportation of crude to Mombasa – which has been pushed back to March next year from the earlier target of August. The crude will be transported by road from Lokichar to the port of Mombasa for storage at the Kenya Petroleum Refineries after the plan for railway connection from Eldoret was abandoned. This followed the downgrading of volumes to be produced to 2,000 to 4,000 barrels daily from the initial estimates of 5,000 to 10,000. The oil companies are handling the tendering for the truck transporting system at a cost which Tullow Oil country manager Martin Mugo said will be market-determined.