17 firms bid to design crude oil pipeline from Uganda

What you need to know:

  • Ministry of Energy officials say 60 firms had initially expressed interest in the public tender but most of them were locked out by the stringent tender terms.
  • The oil pipeline is a joint project between Kenya, Uganda and Rwanda, which were later joined by South Sudan. It is expected to be completed in 2018.

Seventeen companies have expressed interest in designing the planned crude oil pipeline to connect Kenya’s oil fields in Turkana and those in Hoima, Uganda, to Lamu Port.

The United Kingdom has the majority (five) of the firms, some of which are understood to be working for companies in Kenya’s upstream market.

Three Kenyan companies also made it to the list.

Local bidders include Feradon Associate, which submitted a solo bid, while Kurrent Technologies and Linksoft are in a consortium. One Chinese firm, Shandong Luck, also returned tender documents.

The list of bidders seen by the Nation has British firms Genesis Oil and Gas Consultants Ltd, Penspen Ltd, E.P Consult Energies, Wood Group Kenny and KBR.

The US has two pre-qualified bidders: Gulf Interstate Engineering and Vepica/Amazon Energy Inc/Linksoft.

Others are Nigeria’s Dextron Engineering Ltd, Worley Persons (South Africa), Fichtner (Germany), SNV lavelin & KTI, Ramboll Oil and Gas (Denmark), Toyota Tsusho (Japan), Austica pty Ltd (Australia), and Valve Engineering Centre and Partners Ltd.

EXPRESSED INTEREST

Ministry of Energy officials say 60 firms had initially expressed interest in the public tender but most of them were locked out by the stringent tender terms.

“The companies are from Germany, the US, UK, China, Japan and there are some local ones too. Officials from Kenya, Rwanda and Uganda are here to begin technical bids immediately and, thereafter, the financial proposals,” an official, who did not wish to be named because he is not authorised to speak to the media, said.

The oil pipeline is a joint project between Kenya, Uganda and Rwanda, which were later joined by South Sudan. It is expected to be completed in 2018.