Uganda and Kenya plan to build oil pipeline

Uganda and Kenya plan to build oil pipeline

Reuters

KAMPALA – Uganda and Kenya have revived plans for an oil pipeline to transport refined petroleum products between the two east African countries, a senior Ugandan official said on Friday. Landlocked Uganda transports all its fuel – imported primarily through Kenya’s Mombasa seaport – in tankers over several hundred kilometres of road.

Officials say the method is unreliable, costly and damages roads. The new pipeline, estimated to cost $300 million, is expected to join an existing pipeline from Eldoret, western Kenya, and ferry oil to Uganda’s capital Kampala, a distance of about 352 kilometres (218 miles).

Frank Tukwasibwe, Uganda’s commissioner for petroleum supplies, told Reuters the countries had asked firms interested in the contract to submit their bids. “We expected all potential bidders to submit their papers by 30th January and by July or August we want a contractor on site,” he said.

The contract to build the 14-inch pipeline from western Kenya to Uganda was originally handed out in 2007 to the east African unit of Libyan-owned petroleum firm Tamoil. Tukwasibwe said that contract was cancelled in September this year after the project faced multiple delays. Both countries have discovered oil reserves but production is still a few years away.
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Video: Uganda oil bill

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Video: Kenya oil and gas summit

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Uganda oil

By Nicholas Bariyo
Dow Jones Newswires

Uganda has discovered at least 3.5 billion barrels of oil and United Kingdom-based Tullow Oil PLC (TLW.LN) China’s Cnooc Ltd. (CEO) and France-based Total SA (TOT) are preparing to start pumping crude from the basin. The three companies have yet to agree on the oil development plan and refining options with the government, which could delay the startup of oil production, according to analysts.

Nairobi, Kenya

Kampala, Uganda