Oil pipeline works to start in 2 weeks
Energy CS Charles Keter with Uganda’s Minister for Energy and Mineral Development, Ms Irene Muloni, during a meeting in Lamu after touring the proposed Lamu port and pipeline sites. On April 28, 2016, Mr Keter revealed that Kenya will construct the 891-kilometre pipeline with Africa Oil Corporation, Tullow plc and Maersk. PHOTO | CHARLES KIMANI | NATION MEDIA GROUP
What you need to know:
- The pipeline will move 600 million barrels of crude oil from the Lokichar Basin in Turkana County to Lamu port at the Coast.
- The CS said the government would also invite companies to express interest in environmental assessment of the project, which will mark the end of the first phase of its construction.
Work to build the oil pipeline from Lokichar to the Lamu port will start in two weeks.
The pipeline will move 600 million barrels of crude oil from the Lokichar Basin in Turkana County to Lamu port at the Coast.
“We are preparing to float tenders on the pipeline in the next two weeks now that matters of the route have been resolved,” said Energy Cabinet Secretary Charles Keter in his office on Thursday.
Mr Keter revealed that Kenya will construct the 891-kilometre pipeline with Africa Oil Corporation — a Canadian oil and gas company with assets in Kenya and Ethiopia, British oil firm Tullow plc and major shipping company and Danish business conglomerate, Maersk.
“We were waiting for the decision on the regional pipeline route before proceeding. These plans started long time ago. We are working with three firms because this is a big project,” he said.
The CS said the government would also invite companies to express interest in environmental assessment of the project, which will mark the end of the first phase of its construction.
He said the infrastructure to support the pipeline was being laid with the road to Lokichogio near completion while the one to Moyale was under construction.
The Energy ministry’s announcement came as government sources revealed that the country’s political risks, undue influence of a French oil company and President Yoweri Museveni’s need for a refinery, were reasons which led Uganda to settling on the Tanzanian route for the pipeline.
A government source said with the uncertainty over, Kenya was ready to move quickly to make up for the lost time as Uganda prevaricated over the route it will use to transport its crude oil from Hoima in Lake Albert Basin for export.
