Kenya sells first crude oil export – to China

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Kenya has sold its first export of crude oil to a Chinese state-owned petroleum multinational firm.

The deal marks Kenya’s maiden export of the resource and gives China an advantage in negotiating future deals when the East African country moves to commercial production of crude oil. The shipment of 200,000 barrels of crude oil is scheduled to leave Mombassa next month.

Kenya secures first oil export deal

Kenya’s Principal Secretary in the State Department of Petroleum, Ministry of Energy & Petroleum, Andrew Kamau, on Thursday revealed that ChemChina Ltd won the bid to take Kenya’s first oil export.

The Chinese firm is the oil trading arm of ChemChina Petrochemical and was selected “on the basis of its offered price and according to standard international terms,” Mr Kamau said in a statement.

Confirmation of Kenya’s first oil buyer came after President Uhuru Kenyatta announced the Sh1.2 billion (US$12 million) deal without naming the winner of the deal. In the current market, the sale value represents at least $61.99 per barrel.

Featured image: ChemChina

About Aaron Brooks

Aaron Brooks is a UK journalist who wants to cut out the international agendas in news. Spending his early years in both England and Northern Ireland he saw the difference between reality and media coverage at an early age. After graduating from the University of Chester with a BA in journalism, his travels revealed just how large the gap between news and the real world can be. As Editor-in-Chief at East Africa Monitor, it’s his job to provide a balanced view of what’s going on in the region for English-speaking audiences.