Kenyan Oil-Pipeline Accord With Uganda Paves Way for Exports
Kenya and neighboring Uganda agreed on the route of a planned oil pipeline, ending months of debate on the link that will export crude from companies including Tullow Oil Plc.
The pipeline will pass through the Lokichar basin in northern Kenya, Manoah Esipisu, spokesman for Kenyan President Uhuru Kenyatta, said Monday by phone from the Ugandan capital, Kampala. The countries had also discussed building the link through southern Kenya and the capital, Nairobi. The agreed design will be the cheapest to develop, according to an e-mailed statement from the Ugandan presidency.
Tullow has found oil in both countries, with Uganda estimating finds at 6.5 billion barrels and Kenya at 600 million barrels. The planned $4.5 billion pipeline to the Indian Ocean will allow the U.K. company to start exports from joint ventures with Africa Oil Corp. and Total SA. China’s Cnooc Ltd. is also a partner in Uganda. While oil was discovered in Uganda in 2006 and four years later in Kenya, both are still in the planning stage of commercial development. READ MORE