Uganda still considering pipeline through Tanzania

Uganda is still considering transporting its crude oil through Tanzania instead of Kenya, as it could be a cheaper export route.

The government signed a MoU with the Tanzania Petroleum Development Corp. and Total SA to explore this alternative route for the proposed pipeline. Uganda’s Energy Ministry stated: “The objective is to select a route that will result in the lowest unit transportation cost.”

Despite Uganda discovering crude oil in 2006 – and 2010 in Kenya – both countries remain in the planning stage of commercial development for a pipeline. Uganda predicts it could hold resources of 6.5 billion bbls, whilst Kenya evaluates its resources at 600 million bbls – according to the US Energy Information Administration.

Ahmed Salim, Senior Associate at Teneo Intelligence stated: “Given the current oil price environment, it would be wise on part of the Ugandan government to make sure that any finalised agreement will be the most cost effective in a period where fiscal prudence should be a priority.”

Edited from various sources by Stephanie Roker

Sources: The Africa Report, Bloomberg, Citizen

Published on 14/10/2015

Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


Related articles

Uganda to switch to cheaper Tanzania pipeline route?

Uganda's government is still considering a pipeline through Tanzania to export oil if it proves cheaper than a route through Kenya.

Uganda sets conditions for Kenya pipeline deal

Uganda has requested that Kenya comply with their three conditions: provide security, financial agreement, and begin construction without delay.

Kenya and Uganda finalise route for US$4.5 billion crude oil export pipeline

Kenya and Uganda reach a consensus on the route for a crude pipeline, which links both countries’ newly established oilfields to the Kenyan coast.

East African oil, gas and petrochemicals

A look at oil, gas and petrochemicals in East Africa with Business Monitor International.

Recommend magazines

  World Pipelines