Kenya: World Bank To Fund 4.2 Billion Shillings Petroleum Project
By Staff Writer
The Kenyan government has concluded negotiations with the World Bank to finance the Kenya petroleum technical assistance project at a cost of 4.3 billion shillings.
Energy Principal Secretary Joseph Njoroge says the government is now awaiting the World Bank board decision next month on the project.
Kenya is eagerly waiting the day she will start oil production and join the league of the oil and gas producing nations.
Though the country is heavily endowed with gas and oil deposits it is emerging that it is not well equipped to deal with environmental challenges that comes with petroleum production.
Some of the oil producing countries have experienced catastrophic environmental pollution and it is this that the government is trying to avoid.
Njoroge says the government in conjunction with the World Bank will soon roll out the strategic environmental and social assessment under the Kenya Petroleum Technical Assistance project at a tune of 50 million USD or 4.3 billion shillings to help in capacity building.
Since 2012, 16 wells have been dug with 11 of these having promising results.
However, NEMA director general Geoffrey Wahungu says the Authority would monitor environmental management plans on a quarterly basis to avoid economic and environmental damages.
Kenya is set to join other leading African countries such as Angola, Nigeria, Libya and Gabon in production of oil when it starts to export in 2016. Kenya’s petroleum portantial is best depicted in Turkana, Mandera , Lamu, Anza and Tertiary Rift Valley.
Tullow Oil Petroleum Company based in the United Kingdom estimates to has found more than 300 million barrels of oil equivalent resources after making three discoveries in Kenya’s South Lokichar Basin. In February, Twiga became the first well in Kenya to produce oil at a commercially viable rate and has the potential to produce 5,000 barrels a day.
Most of Africa’s oil producing countries have benefited hugely economically in terms of infrastructure, agriculture, employment opportunities and social amenities, but all these comes with a price; fight to control the mining process which have seen it escalate to civil wars with the rise natives, cartels and local militias.
Such cases have been witness in Libya, Nigeria’s Niger Delta that almost lead to secession by the Igbo people and Angola.
Petroleum mining In Africa has been riddled by cases of corruption, human rights violations and smuggling. A fate, the Kenyan government is hoping to escape.