Kenya pipeline link to Uganda oil fields proposed

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 30 -- Kenya's Mombasa-to-Eldoret oil pipeline could eventually be extended to Uganda's Albertine rift basin—site of promising recent oil discoveries—once the line has been extended to Kampala, Uganda.

Habib Kagimu, chairman of Tamoil Uganda Ltd., which in 2006 won the tender to construct the 360-km pipeline extension from Eldoret, Kenya, to Kampala, said his firm's current plans also call for extending the pipeline from Kampala to the Albertine rift in Uganda to transport oil from fields there to the Port of Mombasa on the Indian Ocean for global export (see map, OGJ, Feb. 16, 2009, p. 34).

Echoing earlier statements by Ugandan officials, Kagimu confirmed, over Uganda's national WBS TV, that work on the often-delayed pipeline extension from Eldoret to Kampala will start in April and will take 15 months to complete, with a further extension of the line to the Rift area already in the planning stages.

"Our engineers have designed the pipeline in such a way that in the future, it will be able to transport oil from Uganda back to Mombasa for export," said Kagimu, who added that the pipeline eventually could also be extended from Kampala to Rwanda and Burundi.

There remains debate over the extension to the Albertine rift basin, however, as some Ugandan officials oppose the construction of the export link and instead propose retaining the oil to be refined in Uganda, a proposal that Tumoil and exploration firms Heritage Oil, and Tullow Oil reject as not feasible.

In January, Ugandan state media reported that Uganda and Kenya had formed a joint
coordination committee to fast-track the Eldoret-Kampala pipeline, which had been postponed several times since 2006.

The New Vision newspaper reported that harmonizing bilateral and international agreements defining legal, commercial, financial, taxation, transportation, and custom issues had delayed the pipeline project. According to the Ugandan energy ministry, however, most of these issues have been resolved, and it also expects work on the extension to Kampala to start in April.

Libya-based Tumoil, which in 2006 won the tender to construct the line, will hold a 51% stake in the pipeline, while Uganda and Kenya will jointly hold the remaining 49%.

Recent oil finds
The pipeline extension plans coincide with recent oil discoveries by Tullow Oil and Heritage Oil in blocks they operate and share in Uganda (OGJ Online, Mar. 27, 2009).

Heritage and Tullow hold interests in three licenses on the Ugandan side of the Lake Albert rift basin. Heritage is operator of Blocks 1 and 3A, holding a 50:50 stake with Tullow, while in Block 2 Tullow is operator with a 100% stake.

Tullow and Heritage earlier this month said that exploration in Uganda has shown reserves of at least 600 million bbl.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected