LAPSSET Crude Oil Pipeline
Kenya, South Sudan | EAC, IGAD | Energy
Energy
USD 3,064.00M
Total Cost
25%
Progress
4
Stakeholders
2
Countries
Project Definition
Project Stage
Project Overview
The LAPSSET Crude Oil Pipeline is a strategic infrastructure project to transport crude oil produced in South Sudan and the Lokichar Basin in Kenya to the new deep-water port at Lamu on Kenya's coast. The pipeline forms a critical component of the broader Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor Program, one of Eastern Africa's largest and most ambitious infrastructure initiatives. The pipeline will enable commercial development of oil reserves in both countries, provide a secure export route, and catalyze economic development along the corridor.
Key Objectives
The project aims to: (i) establish a commercially viable export route for crude oil from South Sudan and Kenya's Lokichar Basin; (ii) reduce transportation costs compared to current alternatives; (iii) enhance energy security and economic development in the region; (iv) generate revenue for host gov...
Strategic Importance
The LAPSSET Crude Oil Pipeline represents a transformative project for Eastern Africa's energy sector and regional integration agenda. For South Sudan, the pipeline offers a strategic alternative export route, reducing dependence on existing infrastructure through Sudan and associated geopolitical vulnerabilities.
Technical Specifications
Technology: The pipeline will employ modern crude oil transportation technology appropriate for the waxy, paraffinic crude characteristics found in both South Sudan and Kenya's Lokichar Basin.
Capacity: The crude oil pipeline will extend approximately 820-850 km from oil fields in South Sudan and Kenya's Lokichar Basin to the Port of Lamu.
Financing Structure
The financing structure is expected to follow an integrated project finance approach combining: (i) equity contributions from host governments, potentially through national oil com...
Market Analysis
Current oil production in South Sudan is approximately 150,000-170,000 barrels per day (bpd), transported through Sudan to Port Sudan on the Red Sea. In Kenya, the Lokichar Basin discoveries are estimated to contain 560 million barrels of recoverable oil reserves, with production potential of 60,000-80,000 bpd once export infrastructure is available.
Investment Opportunities
The project presents significant opportunities for private sector participation, including: (i) equity investment in the pipeline company; (ii) EPC contracting for pipeline and ass...
Key Stakeholders
Sponsor: Governments of Kenya and South Sudan, with potential participation from International Oil Companies operating in both countries
Partners: LAPSSET Corridor Development Authority (Kenya), Ministry of Energy and Petroleum (Kenya), Ministry o...
For More Information, Contact:
Christelle Onana
christellen@auda-nepad.org

Bernard Brian Cudjoe
bernardc@auda-nepad.org

www.au-pida.org