Tullow oil anticipates that oil production will contribute around Ksh154 billion in revenue once the Early Oil Pilot scheme moves to full field production in the next three years.
Speaking during a press briefing to report on the progress of the scheme ahead of the inaugural crude oil shipment slated for August, Tullow oil Kenya Managing Director Martin Mbogo said they are targeting to produce 100,000 barrels per day in full field production from the 2000 barrels under the early oil pilot scheme (EOPS)
“We are hoping to get to an investment destination by the second half of next year which is 2020 it will take us about 36 months to put the infrastructure in place. So if we keep to that timetable we will be in a production phase on full field basis” Said Mbogo
The revenue would see the sector emerge as one of the largest foreign exchange earners for Kenya, alongside tourism and remittances from Kenyans abroad.
In late February, Kenya had eyed to start exporting 80,000 barrels of oil per day by 2022, and now they have an additional 20,000 barrels 5 months later which would translate to about more than 30 million barrels a year.
Tullow Oil computed anticipated revenues using a price of $55 (Sh5,500) per barrel. Currently, Brent Crude is going for $66 (Sh6,600) per barrel.
“We will be pushing 80,000 every day of the week, assuming the price of $50 per barrel – today it is upwards of $60 a barrel – and that number will get to $1.5 billion,” Said Mbogo.
The revenues are, however, exposed to the volatility of global oil prices. Prices sunk to $28 (Sh2,800) per barrel in January 2016 and eight years earlier were at an all-time high $147 (Sh14,700) in July 2008.