Oil export plan takes shape after Lamu berth reserved

Lamu Port. FILE PHOTO | NMG

What you need to know:

  • One of the first three berths of the Lamu port has been set aside to handle crude oil, officials have announced barely two weeks before Kenya’s second seaport launches its operations.
  • The move is expected to bolster efforts to build Lokichar-Lamu pipeline, a piece of infrastructure which should up the stakes in wooing South Sudan and Uganda back to Northern Corridor.
  • President Uhuru Kenyatta is expected later next month to commission the operations of Lamu’s port berth one, with the first new pan max ship expected to dock at the facility with transshipment cargo during the launch.

One of the first three berths of the Lamu port has been set aside to handle crude oil, officials have announced barely two weeks before Kenya’s second seaport launches its operations.

The move is expected to bolster efforts to build Lokichar-Lamu pipeline, a piece of infrastructure which should up the stakes in wooing South Sudan and Uganda back to Northern Corridor.

President Uhuru Kenyatta is expected later next month to commission the operations of Lamu’s port berth one, with the first new pan max ship expected to dock at the facility with transshipment cargo during the launch.

Transport Secretary James Macharia told the Business Daily that Berth 3 of the young port had been reserved for fuel exports.

“We are hoping to have both Berth 2 and 3 ready by the end of next year. The Cabinet recently approved for the Petroleum ministry to take charge of Berth 3, and link it with the Lamu-Turkana pipeline to help us ship out our crude oil,” he said.

The sentiments come barely a day after President Uhuru Kenyatta said his government’s aim was to make Lamu “the port of choice for the export of Kenya’s crude oil”.

“Lamu will play host to the newest port on the African East coast. The Lamu port will begin its operations, initially as a trans-shipment hub for global shipping lines. It will be supported by a Special Economic Zone that is expected to attract investors from across the world, to undertake various economic activities,” he said.

In June, the government signed agreements with Total, Tullow Oil and Africa Oil Corp to develop a 60,000-80,000 barrels per day crude processing facility for oil discovered in Lokichar, Turkana. It is expected that the berth will play host to this facility, among other supporting oil infrastructure.

“The infrastructure installed for the foundation stage will be utilised for the development of the remaining oilfields and future oil discoveries in the region, allowing the incremental development of these fields to be completed at a lower unit cost,” said Tullow earlier.

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