The search for a company to design the $2.1 billion (Sh211.2 billion) crude oil pipeline will commence next week, Energy CS Charles Keter has said.
This comes as the deadline for bids, from firms interested to carry out Front End Engineering Design for the proposed Lokichar –Lamu crude oil export pipeline closes today.
The CS yesterday said the initial process which will include an Environmental and Social Impact Assessment is expected to take a minimum six months, to enable the government source for funds for the project.
Construction of the 891- kilometre heated pipeline is expected to be complete by 2020 Keter said.
“With those two documents, you are able to go to the market and look for funds for the pipeline. we are in talks with our upstream partners Tullow, Africa Oil and Maersk on how to manage the pipeline and each company will bring in equity,” Keter told journalists in Nairobi yesterday.
Tullow Oil and partner Africa Oil first struck oil in Lokichar in northwest Kenya in 2012.
World Bank Group- International Finance Corporation’s requirement on ESIA is between six months and one year.
Kenya’s early oil is expected in June 2017 and will be transported by road and rail.
The country’s recoverable reserves are estimated at 600 million barrels.
“We want to truck and rail the oil from Lokichar through Eldoret using the railway line to the refinery in Mombasa, where we shall store to build sufficient quantities to ship. Once we have the pipeline then all oil will go straight to Lamu,” energy PS Joseph Njoroge said.
Kenya decided to go solo on the pipeline project after Uganda pulled out in a previous planned partnership.
Uganda preferred an alternative Tanzanian route announcing last month that it will export its oil to the market through the Tanga port, leaving Kenya to build its own pipeline to Lamu.
Keter yesterday said Kenya is now focusing on the project which will make the country a net exporter of crude oil by 2020.
“We are not worried,” Keter said.