The government of Kenya has approved a commercialisation plan unveiled by the Ministry of Energy, aiming to start crude oil production in 2017. Production and export of 2,000 bbl/d will be soon ramped up to 4,000 bbl/d in June 2017.
Crude oil would be produced in the Lokichar basin (reserves of around 600 mbl) and would be transported by road to Eldoret, from where it would be delivered by train or truck to the port of Mombasa. Crude oil would then be refined at the 35,000 bbl/d Kenya Petroleum Refinery, acquired by the Kenyan government from Essar Energy in June 2016. The idle refinery stopped operations in late 2013 and will be revamped to restart operations in the second quarter of 2017.
The Cabinet has also approved the construction of an oil pipeline between Lokichar and the port of Lamu. In April 2016, Kenya decided to build a Sh 425bn (US$4.1bn) pipeline, after Uganda cancelled plans to build an export pipeline through Kenya, preferring the Tanzanian route.