Kenya has cut its crude oil export projections to 400,000 barrels per year between 2021 and 2023 in what signals a depressing assessment in the international market. That forecast is lower than this year’s shipment target of 500,000.
Andrew Kamanu, Petroleum principal secretary said the government will focus on field development and the construction of a crude pipeline, hence the cut in export plans. Stating that the ministry projects to export some 400,000 of crude annually for the Financial Year 2020/2021, 2021/2022 and 2022/2023. We are going to concentrate on the development of the oilfields and the pipeline,” Mr. Kamau said on Thursday during the ongoing public hearings on 2020/21 sector budget proposals.
The unfulfilled development and construction of the pipeline are expected to pile financial pressure on the government and its partner Tullow Oil whose financials have been fading in the recent past.
Tullow, the British oil explorer, has already cut its capital expenditure for its Kenyan operations by 43 percent for this year with some Sh4.06 billion allocated compared to last year’s outlay of Sh17.6 billion.