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Kenya chooses UK firm to design oil pipeline

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World Pipelines,

Reuters are reporting that Kenya has picked UK firm Wood Group plc to design an estimated US$2 billion (£1.43 billion) oil pipeline to pump crude from fields in the north of the East African nation to an Indian Ocean port, a Senior Government Official said today.

Kenya discovered commercial oil reserves in its Lokichar basin in 2012 and the 800 km (500 mile) pipeline is expected to be built before production is due to start in 2021/22.

Andrew Kamau, the Principal Secretary at the Petroleum and Mining Ministry, said the design work would take eight months.

The government had invited engineering design bids in January for the pipeline, which is expected to cost US$2 billion.

Britain’s Tullow Oil operates the Kenyan fields, while the other investors are Canada’s Africa Oil and France’s Total. Kenya is expected to take a stake through state-owned National Oil.

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