NAIROBI (Xinhua) --
Kenya has signed a development deal
with multinational energy groups for the country’s oil fields in
the northwest region, officials said on Tuesday.
Munyes, cabinet secretary of Ministry of Petroleum and Mining,
said in Nairobi that the heads of terms (HoTs) agreements signed
with Tullow oil, Total and Africa Oil, provide a framework and
commercial certainty required to move ahead with negotiating the
fully termed upstream and midstream long form agreements ahead
of the projects’ final investment decision (FID).
"The HoTs agreements are for the discoveries of fields in
Block 10 BB and 13 T in the South-Lokichar Basin," said Munyes.
"Specifically, the parties have agreed that Amosing, Ngamia
and Twiga fields should be developed as the foundation stage of
the development with a 60,000-80,000 barrels of oil per day
central processing facility." He added.
In 2012, Kenya discovered commercial oil deposits whose
quantity is estimated at 560 million barrels of recoverable oil.
Under the early oil pilot scheme, the east African nation
currently produces between 400 and 600 barrels of oil per day.
The government official noted that the phased approach brings
significant benefits as it enables an early FID. Commercial
exploitation of oil in a timeline meets Kenya expectations.
He noted that the infrastructure installed for the foundation
will be utilized for the development of oil discoveries in the
future phases, allowing for incremental development of these
fields to be completed at a lower cost.
Following the deal, Kenya, together with the joint venture
partners, will now focus their efforts on securing financing for
the 820 km export pipeline from the oil fields to the port of
According to Munyes, mineral and petroleum resources have the
potential of becoming one of the country’s biggest foreign
exchange earners and the engine that drives infrastructure