Companies

Kenya and Uganda’s Heads of state to discuss crude pipeline with oil companies

Monday, 21 March 2016 14:17

The Presidents of Kenya and Uganda as well as oil companies’ executives are meeting on Monday to further negotiate a route for a pipeline to transport the two countries'oil.

According to the spokesman to President Uhuru Kenyatta, deciding the pipeline route is important in helping oil companies present in Uganda and Kenya to make final investment decisions on developing oil fields. “President Uhuru Kenyatta will host Ugandan President Yoweri Museveni tomorrow. They will discuss the construction of the Uganda-Kenya oil pipeline, a key plank of the Northern Corridor Infrastructure Projects,” Manoah Esipisu said in a statement.

Last week, the President of Tanzania, John Magufuli said that Total had reserved $4 billion to construct a pipeline from Ugandan fields to the Tanzanian coast and that Tanzania wants the three-year construction program reduced.

Kenya favors the northern route through Lokichar, because as part of the Lamu Port, South Sudan, Ethiopia Transport (LAPSSET) project, it would transform infrastructure and the way of life of the people in the towns and counties across its path. He added that officials from Tullow Oil, Total and China's CNOOC had been invited to the meeting,” Esipisu told Energy-pedia.

Both Kenya and Uganda are yet to commence commercial production. Tullow Oil and Africa Oil initially discovered oil in Lokichar in northwest Kenya in 2012. Both companies were a 50-50% partners in Blocks 10 BB and 13T, where the finds were made. However, Africa Oil has sold a 25% interest in those blocks to A.P. Moller-Maersk.

Anita Fatunji

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