Kenya is eyeing its first crude exports by 2018 after Japan’s Toyota Tsusho completed the feasibility study and design of an oil shipment pipeline estimated at $4 billion (Ksh388 billion) from Uganda to Lamu.

Joseph Njoroge, the Energy principal secretary, said Thursday that the search for firms to build the mega pipeline will start in six months to December.

Kenya estimates its crude oil reserves to be about one billion barrels – which experts say is enough to make a pipeline viable even without Uganda with its estimated 6.5 billion barrels in reserves. “It is expected that the oil reserves can be monetised by 2018,” said Mr Njoroge.

“Feasibility studies for a crude oil pipeline running from Hoima in Uganda through Lokichar to Lamu have been completed. Request for proposals for the construction of the pipeline will be issued by third and fourth quarter.”

In June last year, Kenya, Uganda and Rwanda invited bids for a consultant to oversee a feasibility study and initial design for the construction of the 1,300-km pipeline.

The consultant was also expected to design tank terminals in Hoima, Lokichar and Lamu as Kenya and Uganda eye petrodollars.

The design also involves the construction of a nine-kilometre pipeline from the Lamu tank terminal to offshore mooring buoys.

East Africa has become an attractive destination for international oil firms after Kenya, Uganda and Tanzania discovered oil and natural gas.

Kenya’s plans for oil production have moved fast since Tullow and Africa Oil’s first discoveries were announced in March 2012.

Tullow Oil and Africa Oil are expected to start pumping by 2016.

In contrast, neighbouring Uganda struck oil in the Albertine rift basin in 2006, but commercial production has been delayed amid wrangles over a refinery, among other factors. The country aims for commercial output by 2016 at the earliest.

Kenya has already prepared a Bill that will guide the sharing of natural gas and oil revenues between the county and national governments.

Counties will share 25 per cent of the oil royalties, local communities five per cent and the yet to be created sovereign wealth fund will be allocated at least five per cent of the income. The national government will get the remaining share.

Kenya will use dividend income from State corporations and proceeds from privatisation of government corporations to build the sovereign wealth fund ahead of oil production.