Business
Nigeria faces more challenges as British firm hits oil in Kenya
A British oil exploration company, Tullow Oil, says it has found oil in commercial quality in Kenya.
It also said production is to begin in the first quarter of 2017.
The discovery process said to have begun since 2013 suffered some delays due to border disputes over where to construct pipelines.
This was due to the refusal of Uganda, which opted to sign a deal with Tanzania for a separate pipeline, citing security concerns over Kenya routing it’s pipeline across its land to the sea port.
But a new understanding is said to have been reached for the export of the Kenyan crude oil to hit the international market, which is feared may put Nigeria, a known leading oil country in Africa to suffer some reduction in the volume of oil from its shores.
Although NNPC has kept mum over the development, informed sources said there were some concerns shown when the news was broken on Monday, by a foreign media outfit.
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An analysts, who has been monitoring the issue said, the only saving grace is that Nigeria has already had some Asian countries added to its old customers in Europe and America, the Kenyan entry into the oil market at a time Nigeria is facing recession is is not the best.
The joint venture agreement will be followed by studies on the pipeline’s technical requirements as well as its financing and ownership structure.
Also consoling is the fact that the expected 500,000 barrel per day (bpd) initial output of the expected 70 million barrels in the new Kenyan well may not constitute a major challenge to Nigeria, with its more than 2.4 billion oil.
But the British firm said it had seen potential in having more than 60 per cent rise in output in that country’s oil reserve in the next two years.
In order to avoid any future agitation in Kerio, the region where the oil is located, it is collaborating with a local oil based company, African Oil, as well as international outfit, Maersk Group of Companies, to investigate the social and environmental impact of oil exploration on the region.
“The joint venture will create room for studies to commence on such area including environmental and social impact assessments, as well as programme on pipeline financing and ownership ,” a spokesman of the firm said.
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Roland Uchendu Pele
December 22, 2016 at 8:48 am
Kenya has joined bad gang! Oil has some evil spirit o! Lol
Nonso Ezeugo
December 23, 2016 at 1:48 am
Yes na the spirit that take human life
seyi jelili
December 22, 2016 at 8:49 am
This is a sad news to Nigeria but a good one to Kenya. But all same , no cause for alarm because it is a clarion call for us to diversify our economy as alternative .
JOHNSON PETER
December 22, 2016 at 12:52 pm
that is if the government are wise. I am sure it will affect our #2trillion target from crude oil comes 2017
yanju omotodun
December 22, 2016 at 4:42 pm
very well because we might not be able to get buyers of our oil as tendency is there for them to focus on kenya because I trust the multinational cooperation , they will go to exploit kenya oil.
Johnson Amadi
December 22, 2016 at 10:43 am
This is indeed bad luck for Nigeria. SORRY!!!
Margret Dickson
December 22, 2016 at 10:45 am
Apparently, more countries will discover oil in their land, Nigeria’s incompetence has forced other countries to search for oil in their countries. No one can be blamed for this, they can’t keep depending on Nigeria for oil
Animashaun Ayodeji
December 22, 2016 at 10:48 am
This will definitely cause reduction in the amount of oil we export. It’s time to embrace agriculture.
Amarachi Okoye
December 23, 2016 at 1:53 am
Yes because it will save us from economic hardship and saving of life
Emmanuel Alayegbami
December 22, 2016 at 1:16 pm
it is lack of exploration that makes other countries think they do not have crude oil. every country has crude oil. I praY OTHER countries discover theirs soon so that Nigeria government can think straight.