PETROLEUM

Our Key Projects

1. Oil and Gas Exploration and Appraisal Wells

In the FY 2017/18, the Ministry supervised drilling of four (4) oil and gas wells (One Exploration and Three Appraisal Wells).

During the FY 2018/19, the Ministry will supervise drilling of two (2) Oil and Gas Exploration Wells in Block L4 Lamu Basin by undertaking the following activities:

  1. Second three (3) officers to work with the contractors drilling the wells by 1st July 2018
  2. Review daily drilling reports submitted by the contractor to monitor implementation by 30th June 2019
  3. Prepare status report by 30th June 2019

2. Early Oil Pilot Scheme (EOPS)

The project’s objective is to gather technical data for designing and preparation of the Field Development Plan (FDP) and, to test the international market for Kenyan Crude Oil.

During the contract period the Ministry will undertake the following activities:

  1. Complete and submit Environmental and Social Impact Assessment (ESIA) to NEMA for approval 30th November, 2018
  2. Facilitate trucking of oil produced in Lokichar during the Extended Well Tests (EWT) to Kipevu Storage Facilities in Mombasa by 30th June 2019
  3. Supervise the Lokichar Oil Field Contract to produce crude oil under EOPS by 30th June 2019
  4. Convene two (2) meetings per quarter for EOPS Steering Committee to review the implementation progress
  5. Export 200,000 Barrels of Kenya Crude Oil by 30th June 2019

3. Lokichar – Lamu Crude Oil Pipeline

The Pipeline will evacuate/transport crude oil from the production fields in the Lokichar Basin to Lamu Port for storage and onward export to the International markets.

During the contract period, the Ministry in collaboration with Kenya Joint Venture (KJV) will undertake the following:

  1. Convene quarterly Pipeline Steering Board (PSB) meetings
  2. Implement Government’s Action Plans from the PSB resolutions
  3. Through the Pipeline Project Team, complete Pre-FEED Investment Decision (FID) activities for the Pipeline under the Joint Development Agreement (JDA) Framework. These activities are:
    1. Completion of the Environmental and Social Impact Assessment (ESIA) on the proposed route and submission to NEMA by31st March 2019.
    2. Completion of Front End Engineering Design (FEED) by 30th June, 2019

4. South Lokichar Oil Field Development Plan (FDP)

The objective of FDP is to give optimal development scenario in terms of technical, economic, commercial, operational, social, environmental and political aspects of South Lokichar Oil Field in the interest of Kenya. The Plan aims to quantify the reserves and to facilitate planning of optimal infrastructure to produce and market Kenyan Crude Oil to the International Market.

During the contract period, the Ministry will:

  1. Review and interrogate the Revised draft FDP in line with the provisions of the Production Sharing Contract (PSC) by30th June 2019
  2. Complete Environmental and Social Impact Assessment (ESIA) and Front-End Engineering Design (FEED) to inform the final FDP by31st March 2019

5. Geoscientific (Geological and Geophysical) Data Acquisition and Management

The project aims to attract oil companies to invest in the sector by providing them with Geoscientific data on the Open Oil and Gas Exploration Blocks. The data will be acquired, processed and interpreted to upgrade the oil gas exploration opportunities.

During the contract period, the Ministry will Survey one (1) Oil and Gas Exploration Block and prepare a report by 30th April 2019.

6. Marketing of Oil, Gas and Minerals Exploration Blocks

The project aims to promote oil and gas exploration opportunities in open exploration blocks. Geological and Geophysical data will be packaged and used for marketing of the country’s oil and gas potential to prospective investors at Local and International conferences and related industry fora.

During the contract, the Ministry will market the exploration opportunities by undertaking the following:

  1. Convene East Africa Petroleum Conference and Exhibition from 6th -8th March 2019
  2. Prepare and present a Country Paper on Oil and Gas sector at the Africa Upstream Conference (Africa Oil Week) in South Africa from 5th – 9th November 2018
  3. Participate in Cambridge Energy Research Associates (CERA) week in Texas (USA) from 11th–15th March 2019

7. Enhancement of Liquefied Petroleum Gas (LPG) Uptake

The Ministry plans to enhance uptake of LPG through purchase and distribution of 6Kg LPG Cylinders and accessories. The aim is to increase LPG penetration from the approximated 9% in 2017/18 FY to 10%.

During the contact period, the Ministry will;

  1. Develop and implement an LPG roadmap and modalities for distribution of the 6Kg Cylinders by 31st December 2018
  2. Procure and inspect 300,000 6kg cylinders by 31st March 2019
  3. Distribute the cylinders by 30th June 2019

8. Eradication of Fuel Adulteration, Dumping and Illegal LPG Refilling

The project aims to effectively monitor and enforce quality assurance standards to alleviate dumping and adulteration of petroleum products to ensure that quality and secure petroleum products are marketed nationally and regionally.

During the contract period, the Ministry will:

  1. Convene two (2) multi-agency engagements on dumping and adulteration of petroleum products, cracking of illegal refilling plants by 30th October, 2018
  2. Undertake Monthly impromptu sample checks of Petrol Stations, Depots and LPG Filling Plants to track sale of any adulterated fuels and prepare high level briefs and reports for action by the Ministry in collaboration with Energy Regulatory Commission (ERC)

9. Security of Supply of Petroleum Products

The project’s objective is to ensure reliability of petroleum products nationally and regionally to mitigate against stock outs.

During the contract period, the Ministry will ensure reliable and secure supply of petroleum products by increasing the flow rate from 750M3/hr to 850M3/hr to meet the project demand of 850M3/hr. This will be achieved by undertaking the following:

  1. Carry out monthly Open Tender System (OTS) awards to ensure adequate supply of petroleum products
  2. Operationalize line 5 (20 inch diameter pipeline) from Mombasa to Nairobi by 30th July, 2018
  3. Receipt of petroleum products in the expanded storage facility in Nairobi from 30th July, 2018
  4. Monthly Distribution of petroleum products to Oil Marketers in Nairobi