Africa Business Communities

Kenya, US in negotiations on constructing oil pipeline

Kenya and the United States government have entered into negotiations on constructing an oil pipeline in Northern Kenya.The disclosure by US Ambassador to Kenya Robert Godec who called on Energy Cabinet Secretary Charles Keter at his office, comes after trade analysts have predicted that the East African nation could be an oil exporting country in 2016, as it races ahead of neighboring Uganda, which discovered the resource about nine years ago.

UK-based oil and gas exploration firm, Tullow, is pressing on with plans to start producing oil in Lokichar despite the substantial drop in crude oil prices that has had many analysts poor cold water on Kenya’s oil discovery.

Addressing the media in Nairobi on Tuesday, Keter said that Kenya is eager to start exporting oil and added that the government is negotiating with the US on how they can cooperate in the extracting oil and also transporting.

The exploration, discovery of oil was done in 2012 and people are asking when are we going to be one of the net exporters of oil and I think that is a very crucial area; we need to fast track it so that we lower the cost of fuel in the country, he said.


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