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Uganda still considering pipeline through Tanzania

 

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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鶹ýӳs Energy Ministry stated: 鶹ýӳThe objective is to select a route that will result in the lowest unit transportation cost.鶹ýӳ

Despite Uganda discovering crude oil in 2006 鶹ýӳ and 2010 in Kenya 鶹ýӳ 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 鶹ýӳ according to the US Energy Information Administration.

Ahmed Salim, Senior Associate at Teneo Intelligence stated: 鶹ýӳGiven 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.鶹ýӳ

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