KENYA HOPES TO BREAK EVEN WHEN SHIP­PING BE­GINS

The Star (Kenya) - - News Business -

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.

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