Turkana Oil Fields: Government’s Race for Viability & Profitability Before 2030
The government is in a race against time to extract oil from the Turkana oil fields, with the viability and profitability of the entire project dependent on the field development plan.
According to Energy Cabinet Secretary Davis Chirchir, the Energy and Petroleum Regulatory Authority’s (EPRA) report will be complete by the end of August and will provide the government with a clear road map for what to do next.
The CS stated, “We are counting on the FDP to provide us with a clear picture of how we will proceed with this project and whether or not we will make a profit at the end of the venture.”
Chirchir added that the government is operating under a time constraint because Kenya is a signatory to the Paris climate agreement, which prohibits it from exploring non-renewable energy sources by 2030.
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He also stated that they will need 1 trillion Kenyan shillings to complete the project, which will be difficult given that two of the three partners have already withdrawn.
“It’s extremely difficult to obtain approvals for a green project, and given the limited time frame we’re working with, the only way we can get the money to do this is if the oil we’re going to obtain is substantial in quantity,” he said.
During a meeting with the leadership of Turkana County to provide an update on the oil project, the county’s leaders expressed their expectations for the endeavor.
Governor of Turkana, Jeremiah Lomorukai, stated, “We want the land issues that have existed in the past to be resolved before the start of the process so that the people of Turkana are not disenfranchised.”
After its joint venture partners Africa Oil Corp and total energies left the Kenya crude project in Turkana, the British exploration company Tullow Oil assumed sole ownership.
Turkana Oil Fields: Government’s Race for Viability & Profitability Before 2030
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