First Oil Pipeline in Kenya to Cost an Estimated 210 Billion Shillings

By Amina Faki

A first oil pipeline will be constructed in Kenya from the Turkana Oilfields to the Coast region of the country.

Preparations of the line design and the environmental audit are underway and are expected to be due in July this year.

According to the British explorer Tullow, engineering studies and contracting are ongoing. This is in preparation for the final design of the pipeline.

The pipeline is to be constructed between Lokichar and Lamu which is an estimate of 865 Kilometres. The construction of the pipeline is estimated to cost 210 billion shillings and expected to be completed in the second quarter of 2021.

Tullow said that the Kenya Joint Venture and the government of Kenya continue to progress the export pipeline commercial and finance studies and preparations are under way for the environmental social impact assessment (ESIA) and FEED which are planned for the second half of 2017.

Currently, Kenya has struck 750 million barrels of oil considered commercially viable and with the exploration going on it indicates that the figure is seeming to cross the billion mark.

The country has all its hope on the oil export with the expectation that it will earn the much more needed petrodollars. This will help the country to cut the ever-rising public debt that now stands at 3.8 trillion shillings equivalent to half the gross domestic product (GDP).

60,000 barrels of crude oil have been stored in Lokichar by Tullow oil waiting to be transported to Mombasa.

Currently, the country has plans to start oil exports in small quantities of about 2000 barrels a day which will commence in June as the test of receptiveness in the global market.

On the completion of the Lokichar-Lamu oil pipeline, the country will be able to pump out about 100,000 barrels per day for exports.