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Kenya invites companies to bid for pipeline

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World Pipelines,

The Ministry of Energy and Petroleum has started the search for a firm to design the planned 892 km crude oil pipeline between Turkana and Lamu in Kenya.

The Ministry said it has invited eight firms to bid for the FEED work, which comprises feasibility studies and an initial design.

The proposed pipeline would transport oil from oilfields in Lokichar to Lamu Port for export.

Andrew Kamau, Principal Secretary for Petroleum said the Ministry last week invited eight companies to bid for the design contract. The companies were selected from a pool of contractors that had submitted applications to be prequalified to undertake the FEED after the Ministry sent out a request for Expression of Interest (EOI) in 2016.

The pipeline is expected to have a capacity of 80 000 - 120 000 bpd.

“The firms who made it through the expression of interest were invited to tender and these were a total of eight companies. They will be awarded the contract by end of April and take about eight to nine months to complete the FEED,” he said. The Ministry had expected to award contract for the FEED mid last year, which would have paved way for the development of the pipeline later this year and scheduled for completion in 2020. Delay in securing a firm to design the pipeline could delay the commencement of building the pipeline, which could in turn delay the commercial oil export phase of the Turkana oil project.

Tullow Oil has reported "significant progress" on the field-development plan that would lead to oil exports from the Lake Turkana region.

In an 11 January operational update, Tullow said some US$80 million of its US$460 million total capital expenditure associated with operating activities in 2018 would be allocated to pre-development spending in Kenya. The focus is on developing already-discovered resources in the South Lokichar Basin on the southern side of Lake Turkana.

The company estimates that South Lokichar holds around 0.75 billion bbls of oil.

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