Kenya will start the construction of an 865-kilometer (538-mile) crude oil pipeline linking fields in its northern region to a new port being built along its Indian Ocean coastline within two years, a government official said.
East Africa’s biggest economy plans to produce its first oil as early as June 2017 and to ship 2,000 barrels daily at the onset, according to Energy Secretary Charles Keter. Before the pipeline is complete, Kenya intends to haul its crude by road until the western town of Eldoret and then to the coast on Rift Valley Railway’s line.
Vancouver-based Africa Oil estimates the South Lokichar basin, about 510 kilometers northwest of Nairobi, may contain as much as 1.63 billion barrels of oil. According to Ministry of Energy and Petroleum Principal Secretary Andrew Kamau, Kenya has “too many investors who want to fund the pipeline,” among them the African Development Bank and the International Finance Corporation. The government sees itself sharing ownership of the conduit equally with Tullow Oil Plc, Africa Oil Corp. and Maersk Oil.
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