Low Oil Price Won’t Cause Major Delay To Kenya Project – Africa Oil

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africa-oil-corp-logoFalling world oil prices will not cause a major delay to plans to begin in northwest Kenya,  Corp’s chief executive said on Thursday. Keith Hill said the biggest hurdle was finalising construction plans for a oil pipeline.

and its partners aim to announce a final investment decision for production in early 2017.

Also Read: Oil Marketers Call for Regular Review of Oil Price

‘The current oil price has indeed put pressure on the project, but we do not believe this low price is sustainable. We do not see a major delay to the project as a result of the oil price, our biggest issue is getting the pipeline finalised,’ Hill said in an emailed response to questions from Reuters.

The pipeline will run from -locked Uganda across northwest Kenya to a planned port in Lamu, on Kenya’s Indian Ocean coastline. Kenya and Uganda agreed to the route in August but they are still working out details, including financing. Uganda has an estimated 6.5 billion barrels of oil reserves.

Also Read: Energy leaders’ insight on future of Kenya’s oil, gas transition

Companies active in Uganda include France’s Total, Britain’s Tullow Oil and China’s CNOOC.

 and partner Tullow Oil first struck oil in Lokichar in northwest Kenya in 2012. The recoverable reserves are an estimated 600 million barrels of crude, which would feed into the pipeline from Uganda when it is built.

Also Read: Uganda Receives 7 Bids in Oil Exploration License Round

and Tullow were 50-50 partners in Blocks 10 BB and 13T where the discoveries were made. has since sold a 25 percent stake in those blocks to Moller-Maersk. It has also sold a 25 percent stake in Block 10 BA to Moller-Maersk.

Hill said the was still actively exploring despite the low oil price.

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