President Uhuru Kenyatta, on Monday, flagged off the first-ever shipment of 200,000 barrels of crude oil from Kenya.
The shipment is headed to Malaysia. This follows a deal which was signed between Kenya and China that saw the country sell the crude oil to UK-based Chinese company, ChemChina. The deal is worth Ksh1.2 billion (USD12 million).
President Uhuru Kenyatta arrives at the Kipevu Oil Terminal, Port of Mombasa, to preside over the flag off ceremony of the first Kenyan crude oil shipment as well as receive the 3rd cohort of Seafarer recruits. | @HassanAliJoho @OilProjectKenya#FirstOfAKind pic.twitter.com/GwJPri28RY
— State House Kenya (@StateHouseKenya) August 26, 2019
Speaking during the flag-off ceremony at the Kipevu Oil Terminal, Port of Mombasa, Uhuru stated that the first shipment marks the beginning of a fruitful journey of the development of Kenya’s oil and gas resources.
President Kenyatta: The flag off and commencement of the early-oil pilot scheme in June, 2019 marked the beginning of what promises to be long but fruitful journey of development of Kenya’s oil and gas resources pic.twitter.com/LTguzOgRMT
— Citizen TV Kenya (@citizentvkenya) August 26, 2019
The head of state has also noted that the project had brought forth many benefits to the people of Turkana and the country as a whole, creating many job opportunities for Kenyans.
President Kenyatta: This early-oil pilot scheme has brought with it prosperity for the people of Turkana but also the wider republic with very many local communities directly benefitting from employment opportunities & logistics in addition pic.twitter.com/LaOd1E6JZc
— Citizen TV Kenya (@citizentvkenya) August 26, 2019
Uhuru reiterated that the shipping and logistics sector will enable Kenya to participate more fully in regional and global maritime transport value-chains.
President Kenyatta: The renewing of the shipping and logistics sector will enable Kenya to participate more fully in regional and global maritime transport value-chains. This, I believe, will create more than 50,000 new jobs in the medium term & make our imports cheaper pic.twitter.com/vZkQFK8nLB
— Citizen TV Kenya (@citizentvkenya) August 26, 2019
To the governors struggling to get a share of revenue from the oil export, the president stated that the money received from the export would be divided fairly among all the devolved units.
“Hii mafuta ni ya wakenya…hii mbuzi itagawa kwa njia sawa na haki.” President Kenyatta responds to Governors asking for a share of oil proceeds. pic.twitter.com/N8H9hPP0Gj
— Citizen TV Kenya (@citizentvkenya) August 26, 2019
The crude oil being exported is from the South Lokichar Full Field Development (FFD) project, being the Early Oil Pilot Scheme (EOPS).
The EOPS is preparing to venture into full exploration of oil after which was discovered in Turkana County, in 2012, by Tullow Oil Kenya B.V and its partner Africa Oil Corporation.
Exporting of oil is expected to open doors for potential commercial exploration and development of oil and oil products, which is expected to increase the country’s Gross Domestic Product.