Construction on the 865-km Kenyan Oil Export Pipeline Imminent

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Construction on the 865-km Kenyan Oil Export Pipeline Imminent

Wed, 03/21/2018 - 12:25
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The town of Lamu with its expanding port will be the final destination of the new pipeline (Authentic travel / Shutterstock)
The town of Lamu with its expanding port will be the final destination of the new pipeline (Authentic travel / Shutterstock)

Companies that are partnering to build Kenya's first oil export pipeline from the Amosing and Ngamia fields to the port of Lamu on the Indian Ocean expect to reach agreement by mid - 2018. The new pipeline will be approximately 865 km long.

“We’ve got two pipeline companies bidding ... Sometime before mid-year we expect to come to an agreement,” Africa Oil Chief Executive Keith Hill told an industry conference. “We are discussing with a couple pipeline companies about coming in as a strategic partner on the pipeline,” he later told Reuters without naming the companies.

Tullow Oil, one of the partners in the project, said in its 2017 annual report that the initial development stage will target about 210 million barrels of oil out of total 560 million of proven and probable reserves, with daily plateau production of 60,000-80,000 barrels per day (bpd). Along with Africa Oil, Maersk Oil and Total round out the partners in the undertaking.

Last year an export pipeline to Port Lamu was shelved in favor of one cutting through Tanzania. Then security concerns in Kenya unsettled the oil companies, particularly the prospect of the Al Shabab militia in neighboring Somalia crossing the border and sabotaging the pipeline.

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