Thursday, May 4, 2023 – The government of President William Ruto has announced that very soon Kenyans would start enjoying lower fuel prices due to local exploration.
National Oil Corporation (NOC) Chairman Kiraitu Murungi made the announcement after he took over the reins of the corporation from Patrick Obath.
Apart from producing its oil, Kiraitu Murungi further revealed that Kenya was set to join the Organisation of the Petroleum Exporting Countries (OPEC) and other oil-producing nations.
“You need to produce your oil because it is what you can control,” Kiraitu outlined measures President William Ruto-led government would institute to cushion Kenyans from fluctuating global pump prices.
On why the country needed to start drilling its oil, the newly appointed NOC chairman revealed that external pressures were affecting fuel prices. This included dollar volatility and global conflicts that always affected energy security in Kenya.
“NOC was established for energy security. NOC still has that relevance. We also have a rich mandate in the upstream sector – exploration and production,” Murungi added.
The country will know if it will join the League of oil exporters in June 2023 after a review of its oil reserves.
The Energy and Petroleum Regulatory Authority (EPRA), which reviews commercializing oil in the South Lokichar Basin, will table its finding in June 2023.
It is estimated that the Basin has an oil reserve of up to 450 million barrels. The government of Kenya currently has 22.5 percent of the oil share in the Lokichar Basin, which is located in Turkana.
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