Country Kenya From Lokichar, Kenya To Lamu, Kenya | General direction North to South Passes through Garissa, Kenya Type Oil pipeline | |
Kenya Crude Oil Pipeline, is a proposed crude-oil pipeline in Kenya. The pipeline will originate in the oil-rich South Lokichar Basin, near the town of Lokichar, in northwest Kenya to end at Port Lamu, on the Indian Ocean. The route will remain as originally planned in the Uganda–Kenya Crude Oil Pipeline, in August 2015. The route, was proposed by Toyota Tsusho, the consultant selected by the two governments of that now-abandoned project.
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Overview
Kenya has confirmed crude oil deposits of at least 750 million barrels. Originally Kenya partnered with Uganda to export that oil through a joint pipeline to Port Lamu on the Indian Ocean coast. When those plans fell through, Kenya announced it would build ts own pipeline from Lokichar to Lamu. The projected length of this pipeline is about 891 kilometres (554 mi)
Cost and timeline
In November 2016, the British oil conglomerate, Tullow Oil Plc, indicated that it would sign an agreement with the Government of Kenya, before the end of 2016, which would pave the way for the construction of the 865 kilometres (537 mi) pipeline. The joint venture will involve African Oil Limited and Maersk Oil, two other companies with oil exploration rights in northwestern Kenya. The joint venture agreement (JDA) will be followed by studies on the pipeline’s technical requirements as well as its financing and ownership structure. Once the Joint Venture Agreement is executed, other studies can begin, including the Front End Engineering Design (FEED), the Environmental and Social Impact Assessments (ESIA) and "studies on pipeline financing and ownership”.
It is expected that the construction of this pipeline will commence in 2018 and last until 2021. The construction cost is budgeted at KES:210 billion. The pipeline will carry anywhere from 80,000 to 120,000 barrels of crude oil every 24 hours. At that rate, the available known reserves will last about 20 years.