Petroleum Africa
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Monday, July 18, 2016
In late June the governments of Ethiopia and Kenya entered into an agreement that at the time was reported to be a pact to build a pipeline between the two countries. According to Kenya’s Foreign Affairs Cabinet Secretary, Amina Mohamed, there has been some confusion on what the agreement revolves around. Mohamed, speaking to The Nation, moved to clarify the agreement between the two countries.
While there are no specifics on an oil pipeline, the MoU signed covers the whole energy sector. “Kenya and Ethiopia signed MoU in five key areas of cooperation among them Cooperation in the Oil and Gas Sector. The two countries expressed desire to advance the mutual benefit that the parties can draw by cooperating in the oil and gas sector,” she said.
According to Mohamed the MoU is a document of intent signaling that discussions have started between the parties concerned and sets the basis for negotiations, however it is not a legally binding contract.
The leaders of both countries, President Uhuru Kenyatta of Kenya and Ethiopian Prime Minister Hailemariam Desalegn, met in Nairobi. During the meeting a set of MoUs were signed as part of joint infrastructure projects to integrate the region under the Lamu Port- Southern Sudan -Ethiopia Transport (Lapsset) corridor.
“The two leaders witnessed the signing of bilateral agreements including a pact on the oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project,” a statement from State House said.
The agreement is only a commitment to assess the pipeline’s feasibility, not the agreement for its actual construction.
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