Kenya, Uganda issue tenders to build oil pipeline

The governments of Kenya and Uganda have issued tenders for the construction of a 350 km oil pipeline linking the Kenyan town of Eldoret to the Ugandan capital Kampala.
The Kenya-Uganda oil pipeline extension will connect with the existing 14-inch diameter pipeline, running from Nairobi to Eldoret, to ease fuel supplies to the landlocked Uganda, Rwanda and Burundi.
“The objective is to identify interested investors with capacity and experience to enter into partnerships with the two governments to develop and operate the pipeline,” the energy permanent secretaries of Kenya and Uganda said in a joint statement.
Potential bidders are required to submit their bids by January 30 and by August successful bidders are expected to be on site.
“Successful bidders will build, operate and transfer the pipeline after 20 years,” the statement said.
The project is expected to cost at least Sh25 billion, according to Kenyan government estimates.
The two countries had awarded the tender to Tamoil East Africa, a unit of Libyan state-owned oil company Tamoil Holdings, but the deal was cancelled last year after the project stalled following the tragic death of Libyan leader Moammar Gadhafi.
Increasing regional demand for fuel as well as the discovery of commercially viable oil reserves in Uganda compelled the two countries to modify the original design of the pipeline to increase its diameter to 14 inches from eight inches.
The Kenya-Uganda oil pipeline will also be equipped with a reverse flow, for future transportation of refined fuel products from Kampala to the Kenyan port of Mombasa as Uganda prepares to develop its oil fields.
UK-based Tullow Oil PLC, Chinese Cnooc Ltd., and Total SA of France are preparing to start pumping crude from Uganda’s oil fields in the Lake Albertine rift basin. The country has at least 3.5 billion barrels of oil.
Source :

Posted on : 30 Nov,-0001

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