{"id":4601,"date":"2016-04-23T13:58:00","date_gmt":"2016-04-23T13:58:00","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4601"},"modified":"2017-01-25T10:05:42","modified_gmt":"2017-01-25T10:05:42","slug":"uganda-and-kenya-to-build-separate-pipelines","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/uganda-and-kenya-to-build-separate-pipelines\/","title":{"rendered":"Uganda and Kenya to build separate pipelines"},"content":{"rendered":"

After a few days of speculation<\/a>\u00a0that Uganda had preferred the Tanzania route over through the Lamu port it is now official that Kenya and her western neighbor will be building two separate pipelines to evacuate oil reserves discovered in the two East African nations as OilNews Kenya had earlier reported.<\/p>\n

“On crude oil pipeline the summit agreed that two crude oil pipelines, one from Lokichar to Lamu and another from Hoima to Tanga will be developed by Kenya and Uganda respectively,\u201d said a statement from the 13th Northern Corridor Integration Projects (NCIP) summit communiqu\u00e9.<\/p>\n

According to Tullow Oil Kenya Country Manager Martin Mbogo which holds licenses in both countries despite the disappointing news the company will now move towards development.<\/p>\n

Tullow which has been pushing for a joint pipeline adds it is however clear that that both Uganda and Kenya\u2019s oil resources can be developed separately with Uganda using the southern route through Tanzania while Kenya will see a pipeline from northern Kenya to the Lamu port.<\/p>\n

\u201cTullow has always stated that the decision around a regional crude oil pipeline was a government-to-government decision and we are pleased that a decision has been made. While we have always believed that a joint Uganda-Kenya export pipeline was the most cost-effective option, we are clear that both Uganda and Kenya\u2019s oil resources can be developed separately. We will now work with both the Government of Uganda and the Government of Kenya and our JV partners in both countries on moving these exciting projects towards development,\u201d Mbogo told OilNews Kenya.<\/p>\n

The decision follows a study by technical teams from Kenya, Uganda and Tanzania which have been deliberating for the past two weeks following efforts by both President Uhuru Kenyatta and Yoweri Museveni to come to a compromise and come up with the most cost efficient route.<\/p>\n

Whilst Uganda has the finances of the project already confirmed<\/a> by French oil giant Total it is not immediately clear where finances for the Kenya pipeline will come from with a farm-out by Tullow Oil likely. Maersk Oil and Gas will carry part of Africa Oil development cost amounting to 400 million as per the farm out agreement.<\/p>\n

“The summit directed Ministers of Finance to establish harmonized financing models to facilitate the private sector\u2019s participation in the projects. Ministers of Finance in conjuction with Ministers of Energy were directed to engage the private sector on financing of the refined petroleum product pipeline through the Public Private \u00a0Partnership model. The Heads of State directed Ministers of Finance to continue sourcing funds for other projects,” the communique statement continues.<\/p>\n

The decision also allows the companies to go ahead with plans on pre development and development phase with the much awaited verdict having acted as a point of uncertainty<\/a>.<\/p>\n

\"13th<\/a><\/p>\n

Another major announcement from the\u00a0\u00a0 13th Northern Corridor Integration Projects (NCIP) summit in Kampala was that Tanzania would invest in the shareholding of the refinery<\/a> in Uganda.<\/p>\n","protected":false},"excerpt":{"rendered":"

After a few days of speculation\u00a0that Uganda had preferred the Tanzania route over through the Lamu port it is now official that Kenya and her western neighbor will be building … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":3902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[70,476,1252,3909,3307,1827,2042,2466,2534,2571,2603],"class_list":["post-4601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-africa-oil","tag-cnooc","tag-kenya","tag-maersk-oil-and-gas","tag-northern-corridor-integration-projects-summit","tag-oil","tag-pipeline","tag-tanzania","tag-total-ep","tag-tullow-oil","tag-uganda","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kenya-Uganda-pipeline-design-1.jpg?fit=900%2C610&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1cd","jetpack-related-posts":[{"id":3059,"url":"https:\/\/www.oilnewskenya.com\/index.php\/east-african-countries-agree-two-crude-oil-pipelines\/","url_meta":{"origin":4601,"position":0},"title":"East African Countries Agree on Two Oil Pipelines","author":"","date":"June 10, 2015","format":false,"excerpt":"East African leaders from Kenya, Uganda and Rwanda have agreed to construct two oil pipelines that will enable Uganda and Kenya commence exports of discovered resources as well as relieve South Sudan dependence on the Khartoum government for its exports. In a communiqu\u00e9 read by Uganda\u2019s foreign affairs Minister Sam\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4598,"url":"https:\/\/www.oilnewskenya.com\/index.php\/hoima-tanga-route-a-done-deal-for-east-africa-oil-export-pipeline-source\/","url_meta":{"origin":4601,"position":1},"title":"Hoima-Tanga Route A Done Deal for East Africa Oil Export Pipeline \u2013 Source","author":"","date":"April 20, 2016","format":false,"excerpt":"Technical teams examining the most cost effective route\u00a0for an export pipeline for Uganda\u2019s 6 billion barrels of oil are said to have settled on the most southern route through Tanzania\u2019s Tanga port according to a source who talked to OilNews Kenya on condition of anonymity. This revelation is a big\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Uganda-Tanzania-pipeline.jpg?fit=300%2C252&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1406,"url":"https:\/\/www.oilnewskenya.com\/index.php\/east-african-crude-oil-pipeline-project-attracts-five-designs\/","url_meta":{"origin":4601,"position":2},"title":"East African crude oil pipeline project attracts five designs","author":"Samuel Kamau Mbote","date":"July 8, 2014","format":false,"excerpt":"The East African crude oil pipeline project has received five bids from a consortium of six companies for the project that is being undertaken by Kenya, Uganda and Southern Sudan. The submissions include three designs that start from the Uganda refinery based in Hoima to the Lamu and Mombasa port\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/trans-alaska-oil-pipeline-11-17848.jpg?fit=300%2C200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":589,"url":"https:\/\/www.oilnewskenya.com\/index.php\/kenya-looking-for-500m-to-construct-new-pipeline\/","url_meta":{"origin":4601,"position":3},"title":"Kenya looking for $500m to construct new Pipeline","author":"Samuel Kamau Mbote","date":"February 25, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Kenya is looking for \u00a0a financier of a $500 million loan to put up a new fuel pipeline from Mombasa to Nairobi to replace the current 14 inch pipeline. The project that is being put together by East African countries in the northern corridor namely Kenya, Uganda and\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4431,"url":"https:\/\/www.oilnewskenya.com\/index.php\/confusion-in-east-africa-over-export-oil-pipeline-route\/","url_meta":{"origin":4601,"position":4},"title":"Confusion in East Africa Over Export Oil Pipeline Route","author":"","date":"March 2, 2016","format":false,"excerpt":"Months after the Kenyan and Ugandan president reached a deal to have the pipeline go through northern Kenya to the Kenyan coast the pronouncement has been thrown into a spin with Museveni\u2019s visit to Tanzania to discuss about the southern route. 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