An oil pipeline. Kenya picked Britain's Wood Group to design its oil pipeline to transport crude from fields in Lokichar, Turkana County in the north to the port of Lamu on the Coast. FOTOSEARCH
Kenya may have to impose a high tariff to transport crude on the South Lokichar-Lamu pipeline to ensure the country recoups its investment.
This is coming to light as it emerges that Kenya’s crude reserves are estimated at only 500 million barrels, with only about 400 million barrels considered recoverable, even as the government awaits the conclusion of the Front End Engineering Design (FEED) study. This realisation now hangs like a dark cloud over the $2 billion project.
