Plans to construct 891km crude oil export pipeline in Kenya between Lokichar and Lamu on the Kenyan coast are underway. The pipeline construction project will cost a whopping US$ 2bn.
Energy and Petroleum minister, Mr. Charles Keter confirmed the reports and said that they will begin a search for companies to design the crude oil pipeline which is anticipated to be complete by 2021.
“In our estimation, if all goes well, the pipeline should be ready in the second quarter of 2021 and it will approximately cost US$ 2bn,” said Mr. Keter.
Tullow Oil and its partner Africa Oil first struck oil in Lokichar in northwest of Kenya in 2012. However, Uganda is as well looking to build a pipeline to export its oil and originally via a route through Kenya but recently at a summit in Uganda, East African leaders preferred to build its pipeline through Tanzania rather than Kenya.
France’s Total which is one of the oil firms developing Uganda’s fields raised security concerns about the Kenyan route since Somalia militants have launched attacks on Kenya, however, Tullow Oil, with stakes in both countries, backed the Kenyan route arguing that it would be cheaper if oil from both pipelines used the same route.
Tullow Oil pointed out that recoverable reserves from its activities in Kenya now total up to an estimated 750 million barrels, up from 600 million barrels initially. Africa Oil and Tullow were partners in where the discoveries were made.
Tullow Oil plc is a multinational oil and gas exploration company founded in Tullow, Ireland with its headquarters in London, United Kingdom. Its largest activities are in Africa and the Atlantic Margins where it discovered new oil provinces in Kenya, Ghana, Uganda and French Guiana.
Africa Oil Corp. on the other hand is a Canadian oil and gas company with assets in Kenya and Ethiopia.