UK firm to design crude oil pipeline

(R-L) Petroleum CS John Munyes and PS Andrew Kamau have a word when they met Senate Committee on energy that is on a retreat at Enashipai Spa and Resort in Naivasha. [Photo/Standard]

Kenya has hired a UK firm to design the crude oil pipeline from Lokichar in Turkana County, to Lamu, that will be used to export oil once commercial production starts by 2022.

Wood Group Kenny, based in Aberdeen, Scotland, will undertake the Front End Engineering Design (Feed), which entails feasibility studies and an initial design, for the more than 890-kilometre pipeline.

The engineering design is expected to inform the specifications of the pipeline as well as how much it will cost the country. The Government has in the past said the pipeline could cost as much as Sh200 billion.

Wood Group was selected from a pool of eight companies that had been pre-qualified and were in December last year invited to bid for the job. Sources at the Ministry of Petroleum said the firm is expected to start work immediately.

State Department of Petroleum Principal Secretary Andrew Kamau said at a past event that the Feed process would take about eight months. “The contract will be awarded by end of April. It will take the contractor between eight and nine months to complete the Feed,” he said.

Construction of the pipeline is expected to start in 2019 and take two years to complete, in time for the first phase of commercial oil production - which Tullow Oil has said will start in 2021 or 2022.

In January the exploration firm said it would undertake production in a phased approach, starting with what it terms the foundation stage, which will involve the production of 210 million barrels of oil from Ngamia and Amosing fields.

In an update to shareholders yesterday, Tullow said it was undertaking Environmental and Social Impact Assessments (Esia), to go hand-in-hand with the Feed.

“Feed and Esia work for the foundation stage of the development is progressing to plan. The upstream baseline data collection for the Esia has commenced and the Feed contract is expected this month," said the firm, adding: "Following the award of the Feed contract, this work is due to start this month.”

The process of selecting a firm to construct the pipeline is underway. “Commercial discussions with potential pipeline contractors are ongoing,” said Tullow.