Construction of a major oil pipeline to facilitate the export of crude discovered in East Africa is expected to start next year, following the completion of the project’s feasibility study and design.

According to Kenya’s Ministry of Energy principal secretary, Joseph Njoroge, Toyota Tsusho, of Japan, has completed the feasibility study and preliminary engineering design for the $4-billion project, paving the way for the next stage, the hiring of a contractor, “The feasibility study for the crude oil pipeline has been completed and we intend to float a request for proposals for the construction of the pipeline by the fourth quarter and hope construction will commence early next year.”

The 1 500 km pipeline will run from Hoima, near Lake Albert, in Uganda, to Lokichar, in South Sudan, and then on to Lamu, in Kenya, where a new port is being constructed.

The pipeline will connect the oilfields of the three neighbouring countries and facilitate easy export of crude oil.

Kenya estimates its crude oil reserves to be about one-billion barrels, while Uganda’s reserves are believed to be in the region of 6.5-billion barrels.

Though Uganda struck oil earlier than Kenya, commercial production has been delayed by controversies ranging from revenue sharing, construction of a refinery and the enactment of laws to ensure Ugandans are the main bene- ficiaries. The country, however, aims to start commercial production next year.

For its part, Kenya has set 2018 as the target date for it first crude exports. Conservative estimates indicate that the country has the potential to rake in more than $1-billion a year.

As the lead consultant for the project, Toyota Tsusho will be required to supervise the implementation of the project, including the installation of a fibre-optic cable from Hoima to Lokichar and then to Lamu and the tank terminals in the three countries.

The project will also involve the construction of a 9-km pipeline from the Lamu tank terminal to a loading buoy anchored offshore.