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Sh100b Lokichar-Lamu oil pipeline to be completed by 2022

Petroleum PS Andrew Kamau said the country will not construct a local refinery to process the Turkana oil as the reserves are not enough to make it a viable project. 

NAIROBI, Kenya, Feb 19 – Construction of the 821km oil pipeline connecting Lokichar oilfields in Northern Kenya to the Lamu seaport to be completed by 2022.

Tullow Oil Kenya Managing Director Martin Mbogo said the pipeline will cost Sh100 billion and will pump about 80, 000 barrels per day.

Mbogo said Tullow Oil is also constructing oil fields at a cost of Sh300 billion to be financed by 70 percent debt and 30 percent equity.

Kenya’s early oil export project transports 600 barrels of oil per day from Turkana oilfields by road to Mombasa port for storage, ahead of shipments expected to begin mid this year.

Kenya has so far struck 750 million barrels of oil since 2012, considered commercially viable, with ongoing exploration indicating the figure is likely to cross the one billion mark.

However, so far, the country is yet to make revenue from the resource.

“Early Oil project is not a commercial venture, it’s about finding out exactly what are the requirements from a logistical point of view and a social point of view on what we will need to produce full field,” said Petroleum PS Andrew Kamau.

So far the country has transported about 80, 000 barrels.

Kamau said the country will not construct a local refinery to process the Turkana oil as the reserves are not enough to make it a viable project.

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