Kenya took a step toward building an export pipeline from its oil fields to the port city of Lamu with the award of an early-phase design contract, Wood said.

Oil and gas engineering services company Wood said it was awarded the initial phase of a front-end engineering design contract to help build momentum behind a proposed pipeline.

"The proposed pipeline will be used to export waxy crude oil from oil field developments in the South Lokichar basin to Lamu port on Kenya's coast," the company's statement read.

A third-party review found reserves in the South Lokichar basin of an estimated gross of 766 million barrels of oil, a 24 percent increase from earlier estimates.

The contract was awarded by the Kenyan subsidiary of Tullow Oil.

Tullow said earlier this year it was busy reviewing all of the data from the South Lokichar basin and planned to outline a development plan as early as this year.

In January, Manoah Esipisu, a spokesman for Kenyan President Uhuru Kenyatta, said French supermajor Total, a partner in the Lokichar fields, committed to a single pipeline to the port city of Lamu as the only option for exports.

A March survey from the Central Bank of Kenya found inflation was on pace to decline and growth trajectories were tracking upward for the year. The bank's survey revealed "almost unanimous optimism" in the private sector.

Tullow in late 2014 came up empty-handed while drilling into frontier basins similar to Lokichar in northern Kenya, despite early optimism.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Oil prices mixed on trade strains and production gains
Washington (UPI) May 29, 2018
Major crude oil benchmarks were spread by as much as 2 percent in early Tuesday trading as trade uncertainty balanced an expected increase in production. Russian Energy Minister Alexander Novak said last week that parties to an effort steered by the Organization of Petroleum Exporting Countries may pull back from over-compliance in the second half of the year. Participating players, of which Russia is the largest non-OPEC member, are doing more than they need to under the terms of an agreement ... read more