Petroleum Africa
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Thursday, October 29, 2015
Progress in bringing Uganda’s resources to fruition seem to continually hit road blocks. The latest stumbling block seems to be a repeat, the route for the pipeline. Kenya and Uganda had announced that they had decided on a route for the pipeline in August; the northern route, from Hoima in Uganda to Lamu on the Kenyan coast. However, talk of a southern route in to Tanzania has been batted about. Uganda is now exploring that option.
The investigation of a new pipeline route will take some time it is assumed, which has led Tullow Oil to push back the timeline for its FID on the development of its discovered resources in Uganda. The new timeline for the FID is now in early-2017. However, in a speech at Africa Oil Week in Cape Town on Tuesday, Permanent Secretary, Ministry of Energy & Minerals of Uganda, Fred Kabagambe Kaliisa said the decision on the pipeline route would be taken in early Q1 2016.
The proposed northern Kenyan route has raised security concerns as it lies near war-torn Somalia. Total, one of the partners in Uganda’s oil development, has said it is considering a pipeline through Tanzania.
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