Kenya Inks Agreement for Crude Oil Pipeline Study

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The Government of Kenya and Tullow Oil, Africa Oil and Maersk Oil have entered into a Joint Development Study Agreement for the Lokichar-Lamu crude oil pipeline, a 820-kilometer pipeline that will run between Lokichar and Lamu on Kenya’s coast.

Under the terms of the agreement, the following assessments and studies will be conducted:

  • A Front End Engineering Design (FEED) study
  • Environmental and Social Impact Assessments
  • Studies pertaining to the financing and ownership of the project

According to Charles Keter, the Government of Kenya’s Cabinet Secretary for Energy & Petroleum, the tenders for FEED study and the Environmental and Social Impact Assessments are expected to be released next week, with the tender for pipeline construction to launch early next year.

The Lokichar-Lamu crude oil pipeline will cost $2.1 billion and is expected to be completed in the first quarter of 2021.

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