Share

E Africa seeks consultant for oil pipeline

Nairobi - Kenya, Uganda and Rwanda have invited bids for a single consultant to oversee a feasibility study and initial design for the construction of a 1 300km oil pipeline to transport crude to the Kenyan coast.

Uganda and Kenya have discovered commercial quantities of oil and plan to start production in the next three years or so.

Kenya's Ministry of Energy and Petroleum said in addition to the pipeline, the consultant would be required to oversee the construction of a fibre optic cable from Hoima in Uganda through the Lokichar basin in northwest Kenya to Lamu, and tank terminals in Hoima, Lokichar and Lamu.

It said in an advertisement published in Kenya's Daily Nation newspaper that will also involve the construction of a 9km pipeline from the Lamu tank terminal to an offshore mooring buoys.

"The pipeline is to be developed as a single project but split into two lots namely Hoima to the Uganda/Kenya border and from the border to Lamu," the ministry said, adding that interested companies and consortia had until July 25 to submit proposals.

The ministry's principal secretary, Joseph Njoroge, said this month the aim of having a single consultant for the whole project was to ensure consistency in the quality of the whole pipeline.

East Africa has become potentially lucrative for international oil firms after Kenya and Uganda's commercial oil finds and discoveries of gas off the coast of Tanzania and Mozambique.

Tullow Oil and Africa Oil, which control blocks in Kenya, have estimated discoveries in the South Lokichar basin at 600 million barrels, a level experts say is enough to make a pipeline viable even without Uganda.

The two companies said on Tuesday they had found additional oil and gas reserves at their northwest Kenya blocks.

Uganda estimates it has oil reserves of 3.5 billion barrels.

The plan for a single consultant and transaction adviser was approved by the governments of Kenya, Uganda, Rwanda, South Sudan, Tanzania and Burundi in early May. Those countries make up the East African Community, although South Sudan is still only an applicant to join the group.

Kenya's plans for oil production have moved fast since Tullow and Africa Oil's first discoveries were announced in March 2012.

In contrast, neighbouring Uganda struck oil in the Albertine rift basin in 2006 but commercial production has been delayed by wrangling with oil firms over Uganda's plans for a refinery and other factors and is not expected until 2016 at the earliest.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.85
+0.9%
Rand - Pound
23.59
+0.9%
Rand - Euro
20.20
+1.0%
Rand - Aus dollar
12.32
+0.6%
Rand - Yen
0.12
+1.6%
Platinum
925.70
+0.0%
Palladium
973.50
-1.7%
Gold
2,344.07
+0.5%
Silver
27.59
+0.6%
Brent-ruolie
89.01
+1.1%
Top 40
69,240
+1.2%
All Share
75,186
+1.2%
Resource 10
63,091
+1.6%
Industrial 25
103,500
+1.0%
Financial 15
15,986
+1.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders