Kenya has set in motion the process to build its own crude oil export pipeline after plans to partner with Uganda in a similar project hit a snag.
Only days after Uganda announced it was partnering with Tanzania instead, Kenya reported that it had decided to build its own pipeline – from Lokichar, in the north of the country, where its oilfields are located, to the Lamu port.
The Kenyan government has since issued an expression-of-interest notice targeted at local and international consultants interested in undertaking front-end engineering design (Feed) activities for the proposed pipeline project.
Kenya is also seeking consultants to undertake environmental- and social-impact assessment (ESIA) studies for the 855 km pipeline.
“Individual firms or consortia may submit bids for the Feed or tender for the ESIA, but not both,” the Ministry of Energy’s Department of Petroleum says in a statement.
Uganda reneged on an agreement to jointly construct a 1 500 km pipeline from Hoima, near Lake Albert, in Uganda, through Lokichar to the Lamu port.
Uganda, in partnership with Tanzania, will now construct a 1 120 km pipeline connecting its oilfields to Tanzania's Port of Tanga. Uganda contends that the Tanzania route is shorter, cheaper and more secure.
The proposed Kenya pipeline will evacuate oil from the Lokichar basin, which is waxy and characterised by a high pour point and a wax appearance temperature above 63 °C, prompting the construction of a heated pipeline.
It is estimated that Kenya hosts about one-billion barrels of commercially viable crude oil reserves.
“The pipeline will employ the highest technical, health, environmental, social and safety standards to facilitate transportation of the crude oil from the oilfields to the market,” the statement adds.
Consultancies wishing to bid for the Feed tender must have recorded a turnover of $50-million or more in the past five years and should provide proof of experience in the execu-tion of such projects for a minimum period of three years.
The winning bidder will be expected to estab-lish the pipeline route, prepare the alignment sheets, produce the pipeline design and block valve stations design, implement cathodic protection and develop the design of the jetty, trestle and loading island at the Lamu port.
The winning bidder will also be required to produce a capital cost estimate, which will be used to determine a target price for the project.
Companies seeking to conduct the ESIA studies must provide proof of a turnover of at least $10-million in the past five years.