Uganda selects Tanzania crude-export pipeline route

Uganda has selected a 960-mile route from Hoima, Uganda, to Tanga, Tanzania, for a crude oil export pipeline. Total E&P Uganda, Tanzanian Petroleum Development Corp., and the governments of Uganda and Tanzania last year signed an agreement to study the pipeline as a means of moving the operator’s stranded resources to market (OGJ Online, Oct. 12, 2015). Tullow Oil PLC and CNOOC Ltd. also have undeveloped Ugandan production.

The pipeline would travel the western shore of Lake Victoria and cross northern Tanzania en route to Tanga. A northern export route through Kenya to the Port of Lamu raised security concerns regarding Somali terrorist group al-Shabaab (OGJ, Mar. 7, 2016, p. 77).

Uganda announced its decision in Kampala at the 13th Northern Corridor Infrastructure Projects summit. The project is expected to cost about $5.26 billion.

Uganda has 2.5 billion bbl of estimated proved reserves but no production (OGJ, Dec. 7, 2015, p. 23) due to lack of export infrastructure.

Media reports state that Kenya still intends to build a pipeline from production near Lokichar, Kenya, to Lamu as part of its integrated Lamu Port-South Sudan-Ethiopia Transport corridor.

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