Following the confirmation last weekend that Kenya has joined the league of global oil-exporting countries, reports say the country’s commercial oil prospects have received a boost from the recent pricing of the first batch of crude oil at an optimal ($60) per barrel.
According to agency reports, investors have from the purchase of the estimated 200,000 barrels of crude, warmed up to opportunities presented by the nearly 600 million barrels of oil reserves in Turkana as the pricing of the premier batch matches up to world-leading crude classifications.
An elated President Uhuru Kenyatta has confirmed last weekend that Kenya’s first deal was indeed concluded with 200,000 barrels sold at a price of 12 million US dollars. “We did not have to yield to a heavy discount from the sale. Other countries who have pioneered early oil have unlike ourselves discounted their prices by nearly Ksh.1036 ($10) per barrel,” a source close to the transaction said.
The appraisal of Kenya’s black gold at current market prices sits behind only the premium valued Brent Crude and well ahead of the medium ranked West Texas Intermediate (WTI). Both Brent and the WTI crude component benefited from the rebounding crude prices in the week to rise by 1.39 and 1.71% by close of trade on Friday to Ksh.6412 ($61.89) and Ksh.5766 ($55.66) respectively.
Like Brent, the Turkana based Kenyan crude has been described as sweet and light, its light attribute describing its low relatively low density as the sweet sentiment underpins the crude’s low sulphur content.
The significant transaction by the Kenyan government is expected to provide impetus to the country’s drive towards full commercial production ahead of the final investment decision (FID) by the British based exploration and production firm Tullow.
Kenya’s Ministry of Petroleum and Mining has, despite the good tidings held its grave silence on the details of the oil’s buyer(s), shrugging off the majority of media queries. Citizen Digital request for commentary on the first oil sale from the Petroleum State Department went largely unanswered.
Kenya seeks to output crude at a rate of 60,000-100000 barrels per day (bpd) upon full commercial development putting the life of the Turkana crude reserves at between 15 and 26 years.
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