Kenya, Uganda could agree on key oil route
Progress on the Kenya-Uganda crude oil pipeline is being delayed by a tag of war between Total and Toyota, the designers of the pipeline feasibility study. PHOTO | TEA GRAPHIC
What you need to know:
- Mr Daniel Kiptoo, petroleum legal adviser for Energy Cabinet secretary said governments of Uganda and Kenya would look at the report and adopt it for public consideration.
- In November last year, the two governments signed a contract with Japanese firm Toyota Tsusho to conduct a feasibility study that will advise on the appropriate route for the crude oil.
- The route starts from Northern Uganda to North Kenya around Lokichar Basin, and then stretches to the port of Lamu. It is 1,380 kilometres long.
A key decision on the route the Uganda-Kenya crude oil pipeline will take could be made this week during the Northern Corridor Heads of State summit starting today in Kampala, Uganda.
The presidents of regional countries are expected to be handed the feasibility studies and the design for the pipeline route from the ministries.
On Monday President Uhuru Kenyatta and his Uganda counterpart Yoweri Museveni ordered the energy ministries in the two countries to ensure cost effective transportation of the crude oil.
Mr Museveni was in Kenya for Madaraka Day celebrations.
Mr Daniel Kiptoo, petroleum legal adviser for Energy Cabinet secretary said governments of Uganda and Kenya would look at the report and adopt it for public consideration.
“Among points that will be considered before adopting the report is cost effectiveness of the route proposed for the crude oil, the heating process, its financial and risk implications,” said Mr Kiptoo by phone.
In November last year, the two governments signed a contract with Japanese firm Toyota Tsusho to conduct a feasibility study that will advise on the appropriate route for the crude oil.
Last month, Energy Permanent Secretary Joseph Njoroge said that adoption of the report would be followed by the search for constructors of the $4 billion pipeline in the next six months.
Since Tullow’s entry into Kenya in 2011, the British oil exploration company has drilled over 25 wells, discovering a gross resource estimate of 600 million barrels.
MUCH TOUTED ROUTE
Uganda has 6.5 billion barrels of oil in place (1.4 billion barrels are recoverable).
The ministers are likely to settle on the much-touted Northern route.
The route starts from Northern Uganda to North Kenya around Lokichar Basin, and then stretches to the port of Lamu. It is 1,380 kilometres long.
Mr Kiptoo said the Northern route is preferred because it is less populated and has a terrain that creates ability to easily connect the pipeline to Ethiopia and other countries.
Experts have said the difficult terrain and waxy nature of East African crude oil, which calls for transportation by a heated pipeline, might stretch the cost, initially estimated at $3 billion, by a quarter.
