Oil Pipeline Deal in Doubt as Uganda and Kenya fail to Agree

Talks between Uganda and Kenya over a crude Export pipeline have closed without the two sides reaching a conclusive agreement on the $400 billion deal.

According to a joint press statement from Kenya Energy Ministry, the talks chaired by Uganda President Yoweri Museveni in Nairobi only ended at presentations and haggling from the technical Team from both countries on the economically viable route for Uganda.

“The two leaders agreed to meet after two weeks in Kampala to allow their technical Team harmonize on their presentations”

The technical teams will in the next sitting focus on considering a least cost pipeline, construction technicalities and costs on all the route options, approving the Oil reserves to determine the pipeline size and the viability of ports; Tanga, Mombasa and Lamu.

A resolution on the pipeline route by both countries is crucial to helping oil companies involved in Uganda and Kenya to make final investment decisions on developing oil fields.

Last week, Tanzania’s presidency said that Total, which has a stake in Uganda’s crude oil discoveries, had set aside $4 billion to build a pipeline from Ugandan fields to the Tanzanian coast and that Tanzania wants the three-year construction schedule shortened.

But industry officials have also said that connecting Kenyan fields, which have estimated total recoverable reserves of 600 million barrels, with those in Uganda would make the pipeline project cheaper because costs would be shared.

Uganda Oil