Kenya and Uganda to establish company to manage crude oil pipeline

Kenya and Uganda are making plans to set up an oil company to be owned by all the stakeholders in the $4 billion crude oil pipeline deal.

Daniel Kiptoo, Petroleum Legal Advisor to the Cabinet Secretary Davies Chirchir told the Nation that the planned company will help address conditions set by Uganda on the pipeline.

It will help the two countries move fast in decision making as well as agree on tariffs set for transporting oil per barrel.

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Tender for the construction of the Kenya-Uganda pipeline to be announced

A tender for the construction of the US$ 4bn Kenya-Uganda pipeline that is expected to cover 1,500km is set to be announced before the end of this year.

The construction project has been incorporated into the Lamu Port- South Sudan-Ethiopia Transport Corridor (Lapsset) infrastructure project.

The Lapsset Corridor Development Authority (LCDA) confirmed the reports and said that the tender that will be inviting companies to submit bids to put up the crude oil pipeline will be announced before the end of this year so as to pave way for the construction works which are projected to commence in early 2016.

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PLANS FOR NEW KIPEVU OIL TERMINAL ON COURSE

PRELIMINARY designs on the planned relocation of the Kipevu oil terminal in Mombasa are being finalised to pave way for the tendering process, Kenya Ports Authority managing director Gichiri Ndua has said.

Danish consultancy firm Niras is overseeing the relocation of the oil terminal, which will expand the country’s petroleum handling and storage capacity by almost 400 per cent.

“We have engaged a consultant who is finalising the designs in regard to the planned relocation of the Kipevu oil terminal,” Ndua said. KPA principal communication officer Hajj Masemo said the project is part of the Mombasa port infrastructure development.

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Kenya: New Kenyan Law to Regulate Oil, Gas Exploration

Kenya's parliament is scheduled to debate a new petroleum Bill that will establish an independent upstream regulatory authority and a sovereign wealth fund.

If the law is passed, the national government will retain 75 per cent of the profit from commercial oil and gas produced, with the county governments hosting the deposits getting 20 per cent and the local community 5 per cent.

The county governments are expected to legislate on the establishment of boards of trustees and the prudent utilisation of the funds received, says the Petroleum Exploration and Production Bill, 2015, which is already before parliament.

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