Happy news for Kenya, but depressing reminder for Somalia, Eritrea and Ethiopia who should have been OPEC long ago.

[Old_Observer]

Kenya has become OIL EXPORTER.

Oil was found in Ethiopia and Somalia in the 1915/20s.

Agreement was signed between Ethiopia and American comapany (Standard oil - predecessor of EXON) in 1920. Then the British French Italian and Amxara overthrew the Prince and brought Haileslassie to power and the whole thing ended.

Oil was found in Saudi Arabia in the 1930s, in Sudan 1960s, Uganda 1980s....

The War in Somalia in 1991 has everything to do with Oil in addition to local and regional issues. There were 4 American companies that had agreements with the late Barre regime and some of it is still valid.

In the mean time our neighbor and fellow African Kenya has joined OPEC not formal yet.

How disappointing is this for Somali and Ethiopians. This is an issue to hold your head down....Somalia and Ethiopia can bragg all they want about war, but development is measured in Dollars.

 

According to Tullow Oil CEO Paul McDade, pilot oil shipments will be made in small batches over the course of 18-24 months so that buyers can assess the quality of Kenyan hydrocarbons. Commercial production is expected to be launched in 2023.

Oil was discovered in Kenya in 2012, in the Lokichar Valley in the west of the country. The reserves are estimated at 560 million barrels. The extraction began in 2018.

 

Tullow Oil had agreements in both Somalia and Ethiopia in the 80s and 90s.

 

[Old_Observer]

Kenya offers the world its first oil production
By Paul Antonopoulos Last updated Aug 27, 2019


NAIROBI – For the first time in its history, Kenya has become a country that exports crude oil.

According to The East African, the first batch of 200,000 barrels was sold at auction for $12.6 million. It was bought by a Chinese company.

The solemn shipping ceremony of the first oil tanker ship in Kenya took place in the port of Mombasa. President Uhuru Kenyatta personally raised the national flag on the ship.

According to Tullow Oil CEO Paul McDade, pilot oil shipments will be made in small batches over the course of 18-24 months so that buyers can assess the quality of Kenyan hydrocarbons. Commercial production is expected to be launched in 2023.

Oil was discovered in Kenya in 2012, in the Lokichar Valley in the west of the country. The reserves are estimated at 560 million barrels. The extraction began in 2018.

Petroleum principal secretary Andrew Kamau Thursday revealed that ChemChina (UK) Ltd won the bid to lift the Turkana oil, in what marks Kenya’s entry into the league of oil exporting countries.

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The Chinese firm, which is the oil trading arm of ChemChina Petrochemical, is engaged in crude oil trading, storage and procurement for ChemChina’s refinery companies.

The firm also has a presence in West Africa, according to its online profile.

“Kenyan government and Tullow Oil Plc together with its Joint Venture Partners in Kenya (Total and Africa Oil Corp) are pleased to announce that ChemChina UK Ltd has been selected as the buyer for Kenya’s first crude oil export.”

The European Commission is mobilising $55.9 million for emergency humanitarian funding to help people hit by drought in four countries in the Horn of Africa.

The biggest portion of humanitarian aid package goes to Somalia as $27.9 million will support drought affected communities, Ethiopia receives $22.3 million, Kenya $3.3 million and Uganda $2.2 million to fight famine.

It is estimated that 13 million people need emergency food assistance due to drought caused by two consecutive poor rain seasons. The $55.9 million will assist humanitarian agencies to scale up action in hardest hit areas.

[galbeedi]

Tullow oil is a very small player. It doesn't even produce 200,000 barrels per day. Its operating revenue is less than half a billion world wide. They mostly operate in small deposit area like Ghana , Kenya and other weak nations.

Kenya is trying to export 200,000 barrel for the whole year of 2019. My friend that is peanuts according to oil production. How can they join OPEC if they can't even produce a 100,000 barrel a day.

In Somalia , when we produce, ' InashAllah' will be dealing with ExxonMobil , BP and other big boys. We were away since 1991, so give as few years. For us 2018 is year zero now.

 

[Dhaqaale]

This is the reason I believe Somalia will loose its sovereignty. Oil, gas, uranium, iron and cooper will go to Ethiopia when they annex Somali lands. Somalis have been blessed with natural resources, a homogeneous country and located on a premier trade route between east and west. But did they turn their country into Singapore? No. Somalis are a foolish people that will go extinct.

[Old_Observer]

On 10/9/2019 at 10:07 PM, galbeedi said:

Tullow oil is a very small player. It doesn't even produce 200,000 barrels per day. Its operating revenue is less than half a billion world wide. They mostly operate in small deposit area like Ghana , Kenya and other weak nations.

Kenya is trying to export 200,000 barrel for the whole year of 2019. My friend that is peanuts according to oil production. How can they join OPEC if they can't even produce a 100,000 barrel a day.

In Somalia , when we produce, ' InashAllah' will be dealing with ExxonMobil , BP and other big boys. We were away since 1991, so give as few years. For us 2018 is year zero now.

 

What Tullow oil does is find, confirm, start and leave. Selling at the stage of confirmed and started operation is most profitable unless one is Exon or Shell/BP..

 

The 200,000 Kenya exported is for testing by refineries. Every kind of oil is not refined in one refinery. After there is refineries that will take it, then continuous export will start. Buyers will also be known then.

As you said 'InshAllah' so far has been nothing but disappointment in the Horn

[Old_Observer]

On 10/10/2019 at 5:21 AM, Dhaqaale said:

This is the reason I believe Somalia will loose its sovereignty. Oil, gas, uranium, iron and cooper will go to Ethiopia when they annex Somali lands. Somalis have been blessed with natural resources, a homogeneous country and located on a premier trade route between east and west. But did they turn their country into Singapore? No. Somalis are a foolish people that will go extinct.

Unfortunately Uranium is the next oil. Mali is first victim of it.