The construction of a pipeline linking oil fields in South Sudan to Lamu Port will start in June next year, South Sudan’s finance minister Kosti Manibe said on Friday.
The pipeline will cost Sh252 billion ($3 billion) and is estimated to be finalised within two years, in time for the completion in construction of Lamu Port.
Mr Manibe was speaking at press conference after attending the fourth Joint Coordination Commission (JCC) meeting which brings together government representatives from Kenya and South Sudan.
Kenya delegation was led by Energy minister Kiraitu Murungi.
“Preliminary aerial survey has been done and the associated engineering design will follow soon. The identification of private sector partners will be done so that construction can start by June next year,” said Mr Murungi.
Mr Manibe said that his government intends to use its proven oil reserves as guarantees against private sector lending towards the project in addition to financing from proceeds of oil sale.
“We have both proven reserves that have not yet been exploited as well as the exploited ones that will be used as guarantees for investments,” said Mr Manibe.