Kenya to Develop Pipeline for Lokichar Oil

Kenya to Develop Pipeline for Lokichar Oil

Kenya’s Energy and Petroleum Minister, Charles Keter, stated that the government and its upstream partners, Tullow Oil, Africa Oil and Maersk Companies, have concluded a Joint Development Agreement (JDA) for the development of a crude oil pipeline, Reuters reported.

The $2.1b pipeline will run 891 km between Lokichar and Lamu on Kenya’s coast. The project is scheduled to be completed by 2021, according to Africa-ME.

In 2012, Tullow and Africa Oil first discovered oil in the Lokichar Basin in Kenya’s northwest. The recoverable reserves are an estimated 750m barrels of crude. The two firms were 50-50 partners in blocks 10 BB and 13T where the discoveries were made. Africa Oil has since sold a 25% stake in those blocks to A.P. Moller-Maersk.

The government and the companies are pushing to start small scale crude oil production in 2017, at about 2,000b/d to be initially transported by road until the construction of the pipeline is completed.


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