National Energy Policy - Final Draft - 14 Nov 2013

6. It is hoped that the discovery of commercial deposits of oil in Kenya will mitigate the effects ofglobal geopolitical issues and fluctuation of exchange rates in the supply of petroleum productsin the country.2.2.10 Lamu Port and Lamu-South Sudan-Ethiopia Transport Corridor1. The Government is at an advanced stageof development of the LAPSSET project.2. The Government will construct a 1400kilometre oil pipeline stretching fromLamu to Juba, in South Sudan.3. The Government will facilitate the settingup of merchant oil refineries to processcrude oil to meet the growing demand foroil products in the region. The refinerieswill process crude oil from within and theregion.4. A modern oil terminal will be put up tofacilitate oil tanker loading and offloadingin the high seas.5. The Government will also construct asecond pipeline from the Lamu refinery toAddis Ababa to deliver refined oilproducts to Ethiopia.6. The Government also intends to constructa spur pipeline to join the Lamu – Jubapipeline to the existing Mombasa-Kampala pipeline.Figure 2.6 – The LAPSSET Project2.2.11 Challenges in Petroleum2.2.11.1 Petroleum Upstream Activities1. Attraction of capital for petroleum exploration and production activities.2. High cost of acquisition of new technology.3. Manpower and technical capacity.4. Inability to access potential exploration sites/blocks which are located on private land or culturalheritage and conservancy areas as well as game parks/reserves.5. Limited primary technical data in most of the country’s exploration blocks.27 2.0 – FOSSIL FUELS