Oil sector faces changes as Uganda plans drilling

For example, exportation of oil products in the first nine months of 2009 amounted to Sh3.7 billion.

To cash in on the discovery, Mr. Wachira reckons that Kenya need to adopt a pro-active approach so as to benefit from the new discovery rather than lose.

“What is within our control is to proactively approach Uganda on what their plans so that we can plan correctly without creating future white elephants and provide it with opportunity to leverage on our established infrastructure such as the proposed Lamu port which may become more relevant to Uganda oil sooner  than Sudanese oil.”

Other industry players see the effect of the Uganda oil likely to be realised in the medium term and not immediately.

“It takes a considerable period of time to commercialise oil production, therefore, the discovery in Uganda will take up to 10 years to have a noticeable effect in the region,” said Peter Thuo, the head of exploration at the National Oil Corporation of Kenya (Nock).

Mr. Thuo says existing pipeline can also be reconfigured to allow for reverse flow from Uganda to Kenya thereby stabilising our supply and prices.