Consultant for USD 4-bn East Africa oil pipeline named

18 November 2014

Kenya, Uganda and Rwanda have named the consultant for the regional oil pipeline. Kenya Energy’s Joseph Njoroge says the project will be developed as a single entity, split into sections that will be undertaken by each state in their regions.

The three states chose Toyota Tsusho Engineering Corporation from eight companies that had prequalified for the tender. It is expected that feasibility studies and design of the pipeline will be carried out by the company in five months from the period of issuance of the contract.

Toyota will also be required to supervise construction of a fibre-optic cable running from Hoima in Uganda, through Lokichar in Kenya to Lamu and tank terminals in Hoima, Lokichar and Lamu.

Tullow oil and Africa Oil have in the recent past discovered 600 million barrels of commercially viable oil in South Lokichar basin in Kenya. In Uganda, the government estimates their crude reserves at 6.5 billion barrels.

The idea of a single contractor for the project was approved by the East African Community member states of Uganda, Rwanda, South Sudan, Tanzania and Burundi in May this year.

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