Energy Cabinet secretary Charles Keter. PHOTO | FILE
By Reuters
In Summary
Kenya will start a search next week for companies to
design a crude oil export pipeline costing some $2.1 billion (Sh210
billion) and which should be completed by 2021, Energy and Petroleum
minister Charles Keter has said.
Tullow Oil and partner Africa Oil first struck oil in
Lokichar in northwest Kenya in 2012 and Keter said the pipeline between
Lokichar and Lamu on Kenya’s coast would be 891 km long.
“In our estimation, if all goes well, the pipeline
should (be ready) in the second quarter of 2021,” he said. “The capex, I
mean the cost, which can either come down or up, is $2.1 billion,” Mr
Keter told reporters.
Uganda is also looking to build a pipeline to
export its oil and originally favoured a route though Kenya. But last
week, East African leaders said at a summit Uganda would build its
pipeline through Tanzania rather than Kenya.
France’s Total, one of the oil firms developing
Uganda’s fields, had raised security concerns about the Kenyan route. A
Kenyan pipeline could at points run near Somalia, from where militants
have launched attacks on Kenya.
Tullow Oil, with stakes in both countries, had
backed the Kenyan route, saying it would be cheaper if oil from both
pipelines followed the same route.
Picking a route for the pipelines is vital for the
oil companies’ final investment decisions on developing Uganda’s and
Kenya’s reserves, which are among a string of oil and gas finds on
Africa’s east coast.
Tullow Oil said on Thursday the recoverable
reserves from its activities in Kenya totalled an estimated 750 million
barrels, up from 600 million barrels previously.
READ: Tullow to resume exploration, ups Turkana reserves
Africa Oil and Tullow were 50-50 partners in blocks 10 BB and 13T where the discoveries were made.
Africa Oil and Tullow were 50-50 partners in blocks 10 BB and 13T where the discoveries were made.
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