Uganda and Kenya plan to build oil pipeline

December 15, 2012

Africa, Business

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.
________________________________________
Video: Uganda oil bill

________________________________________
Video: Kenya oil and gas summit

_______________________________________

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.

Kenya map

Uganda map

Kenya Oil -Tullow Oil

Nairobi, Kenya

Nairobi Skyline 01

Kampala, Uganda

Kampala Uganda

 

About Dilemma X

Dilemma X, LLC provides research dedicated to the progression of economic development. Our services aid clients in enhancing overall production statistics. Please visit http://www.dilemma-x.com for more information

View all posts by Dilemma X

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: