KCSPOG Press Statement on Early Oil Pilot Scheme Expected Revenues

The Early Oil Pilot Scheme (EOPS) that commenced in June 2018 is a scheme aimed at assisting Tullow, its Joint venture partners Africa Oil, Total and the Government of Kenya get more information from the oil wells, test the market for Kenya’s crude and the logistics of handling crude. In August 2019, the President of Kenya indicated that Kenya has found a buyer for the 200,000 barrels of crude oil stored in Mombasa at 12 Million dollars. The latter would represent a discount of $3.50 on the price of Brent crude in world markets. However, we are unable to determine the exact amount that shall accrue to government as the costs of EOPS are yet to be declared. It is worthy to note that while we have found a buyer the oil still sits at Mombasa and is yet to be exported. Additionally, EOPS has been fraught with challenges with the major issue being the stoppage in June 2018 occasioned by the exclusion of local communities in the decision-making process. In light of this KCSPOG released a press statement.