Kenya and Uganda are currently making plans to set up an oil company to be owned by all the stakeholders in the $4 billion crude oil pipeline deal.

Daniel Kiptoo, Petroleum Legal Advisor to the Cabinet Secretary Davies Chirchir, told the Nation that the planned company will help address conditions set by Uganda on the pipeline. Adding that it is aimed at helping the two countries move fast in decision making as well as agree on tariffs set for transporting oil/bbl.

 “The company will be a joint venture owned by Uganda, Kenya and oil investors in the country. The firm will own and manage the pipeline and help us address the issue of tariffs,” Joseph Nyaga who is in charge of the Northern Corridor Integration Project Authority in Kenya said.

Meanwhile, the two countries have disregarded a move by Total E&P Uganda to scout the Tanga route as an alternative cheaper option for the crude oil pipeline.

However officials handling the crude oil pipeline discussions from both countries said they are working according to the directive of President Uhuru Kenyatta and Uganda’s Yoweri Museveni.

The two presidents agreed that Hoima-Lokichar-Lamu oil pipeline must start as soon as possible subject to financing, security guarantees, transit tariffs and no further delay by Kenya.

“Uganda is already engaged in serious discussions with Kenya on the way forward especially on the conditions given to develop the pipeline,” Bashir Hangi, communications officer at the Petroleum Exploration and Production Department of Uganda’s Ministry of Energy stated.

At the moment, Kenya and Uganda are awaiting settlement on a decision that will open up financing and dictate construction of the pipeline.