Kenya ready to export crude oil — but there is still a row over oil revenue allocation

70,000 barrels of crude oil are ready for pilot export.

Petroleum Principal Secretary Andrew Kamau said Kenya has already stored 70,000 barrels of crude in Lokichar in readiness for transportation to the Port of Mombasa by specialised lorries for exportation.

“We are ready to pilot, we are just waiting for the Bill because the oil is already in the tanks,” he said.

The bill still contains a few issues regarding sharing of revenue, according to Petroleum Chief Administrative Secretary John Musonik.

Large-scale production

“The issues of who gets what is still a problem because right now it (the Bill) states that the national government gets 70 per cent, 20 per cent goes to the county and 10 per cent to the community."

The Bill must be passed before Kenya can embark on large-scale oil production.

President Uhuru Kenyatta has however rejected the 10 per cent share allocation to the local communities directing Parliament to reduce it to five per cent.

Mr Musonik said the ministry would transport 2,000 barrels of the crude oil daily to the Changamwe storage facilities.

The early oil exports would be followed by commercial production and exports after the pipeline is completed in 2021.

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