The Chairman of the state-owned National Oil Corporation of Kenya, Kiraitu Murungi, has called on the government to increase investments in oil production in order to access potential revenue estimated at 1.1 trillion shillings ($8 billion). Murungi, a former energy minister, believes that boosting investments in hydrocarbon production will help alleviate the nation’s debt crisis, as reported by the state-owned Kenya Broadcasting Corp.
According to Murungi, Kenya has the potential to earn at least $8 billion from the Lokichar Basin alone, which would significantly reduce the need for borrowing. The Lokichar field asset has an estimated recoverable volume of 472 million barrels, as stated in the report.
In a related development, Tullow Oil, headquartered in London, announced last month that it would assume full control of Project Oil Kenya Development after the exit of its two joint venture partners, Africa Oil Corp and Total Energies, in blocks 10BB, 13T, and 10BA in the South Lokichar Basin.
Tullow Kenya BV Managing Director Madhan Srinivasan described Project Oil Kenya as a low-cost development project with the potential to unlock substantial value.
Kenya’s increased investments in oil facilities and the development of the Lokichar Basin hold promise for the country’s economy and energy sector. The revenue generated from oil production could potentially contribute to reducing Kenya’s debt burden and stimulate economic growth.
