Search for East Africa’s Crude Oil Pipeline Builder to start in 6 Months

The search for the builder for the 1300km pipeline running from Uganda’s Hoima region through Lokichar in Turkana all the way to the Kenyan coast will commence in six months according to Ministry of Energy and Petroleum principal secretary Joseph Njoroge.

This follows the completion of the feasibility studies by Toyota Tshusho in a contract funded by three East African States Kenya, Uganda and Rwanda. Toyota Tshusho beat a consortium of companies including one by Tullow Oil and its partner Africa Oil starts from the Lokichar basin to Lamu, a consortium consisting of Tullow/Total/ CNOOC,Total (Hoima-Eldoret-Lamu/Mombasa) and the last by Lapsset the development authority overseeing the Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) Corridor which starts from Juba in Southern Sudan through Lokichar and Moyale to the Lamu port.

“Feasibility studies for a crude oil pipeline running from Hoima in Uganda through Lokichar to Lamu have been completed. Request for proposals for the construction of the pipeline will be issued by third and fourth quarter,” Njoroge is quoted by the East African.

Kenya which hopes to see its first exports in three years hopes that it’s discovered recoverable crude oil reserves currently estimated at 600 million barrels will surpass one billion barrels once appraisal well drilling is complete to enable a pipeline carrying its own crude economically viable even without Uganda’s 6.5 billion barrels.

Besides the pipeline the builder will also be tasked with building tank terminals as well as mooring bouys offshore Lamu.

Kenya has been positioning itself as an important player in the oil transportation business with the country is investing in a number of infrastructure including a standard gauge railway, roads, pipeline and a modern seaport in Lamu that will ensure it stands out from its competitors to serve potential clients including Uganda, South Sudan and Ethiopia all of which are landlocked with all except the latter having vast oil reserves.