Kenya plans to produce up to 4,000 barrels of crude daily

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The authorities of Kenya announced a new plan for oil production. The government hopes that the output will reach from 2,000 to 4,000 barrels of crude daily, reports the Oilprice.com.

The plan of the Kenyan government requires a new pipeline to be built from the oilfields in the North of the country to the regions on the coast. Moreover, the officials are going to upgrade the road infrastructure to make transportation of the crude to the country’s biggest port in Mombasa quicker and more comfortable.

Today the breakeven price for Kenyan crude is estimates as US$45-49 a barrel, according to the data from KPMG. The previous estimates were US$37-42 a barrel, but the abovementioned construction of a pipeline affected the price of transportation causing the whole cost increased a little.

The largest oil deposits of Kenya are located in the northwestern region of the country. Today there are three companies exploring them - Tullow Oil, Maersk Oil, and local Africa Oil. The partners promise to double the number of wells to increase the output to 2,000 bpd.