Kenya and Uganda have advertised for a lead consultant that will oversee the feasibility study and initial design for the construction of a 1300 kilometer pipeline from Uganda to Lamu Kenya to facilitate the production and export of oil in both countries.
Speaking during the Oil and Energy services local content convection hosted in Nairobi principal secretary in the ministry of energy Joseph Njoroge told delegates that the bids for the pipeline the government is also encouraging international bidders to team up with local players as the government backs local content.
“We are asking even the international bidders to work with local firms so that we can ensure that the local business people also benefit from the start,” said Njoroge.
Njoroge says the ministry of energy is already developing policy that will make it compulsory and formal for international companies to ensure they partner with local players in the $4 billion venture that will also serve South Sudan and Rwanda.
The pipeline as advertised will also see the construction of a 9 kilometer pipeline from the Lamu tank terminal to an offshore mooring buoys.
There is also a proposal to have locals who will be paid for way leaves in the construction of the pipeline to be allocated shares instead and own a stake in the channel.
The advertisement comes even as production plans for production in Uganda are in top gear with bids for the refinery in Hoima already submitted by four bidders including China’s state-owned China Petroleum Pipeline Bureau (CPPB), Japan’s Marubeni Corporation, South Korea’s SK Energy Co. and another led by Russia’s RT-Global Resources.
In Kenya the government is awaiting development plans for the infrastructure, from oil fields in Northern Kenya, from Tullow oil and its partner Africa Oil.