President Uhuru Kenyatta recently announced that Kenya had exported its first consignment of 200,000 barrels of oil worth $12 million. The first shipment will reportedly leave the port of Mombasa this month following the upgrade of the existing pipeline . It was reported that Kenya managed to sell its sweet light crude at a premium price of $60 per barrel, higher than the $43 per barrel the government had set to meet the break-even point for the Early Oil Pilot Scheme (EOPS). However, the government has not divulged the details of the export destination which has raised concerns among civil society platforms. According to Petroleum analysts, countries like China and India have expressed significant interests in Kenyan crude. Apart from that, brokers from across the globe have approached with promises of finding buyers. Concerns are also raised on the delay in tabling of the Kenya Sovereign Wealth Fund Bill, 2019 in parliament which is expected to provide institutional arrangements for effective administration and efficient management of minerals and petroleum revenues The activists are demanding the details of the production-sharing agreement signed with Tullow Oil and its joint venture partners particularly on how much of the $12 million would cover the costs of EOPS and how much EOPS would eventually cost taxpayers cumulatively.
Tullow Oil has a 50 percent stake in oil in Kenya. With, an estimated investment of $1.8 billion the company has been pushing for exports under the EOPS. On its part, the Kenyan government has justified the scheme as a precursor to full development and commercialization of the crude oil business.
