Tender begins as Uganda plans to build oil pipeline

By Phaedra Friend Troy

According to a report from Dow Jones, the government of Uganda has started the tendering process for the construction of an oil pipeline in the central African country.

From a proposed refinery in Hoima, the 230-kilometer oil transport pipeline will link the prolific Lake Albert Rift Basin to Kampala, the capital.

The Junior Energy Minister of Uganda Simon D’Ujanga said that the country is issuing tenders in February to pre-qualify companies interested in contributing to the massive construction project.

"We are also in talks with our neighbors, Congo and Kenya; we intend to integrate the entire project to eventually run up to the east African coast," said D’Ujanga, reported Dow Jones.

Tullow Oil (AIM:TLW) has been forced to delay production start-up from its oil-rich Lake Albert Rift acreage due to poor infrastructure. While the project was slated to come on-stream in 2012, production has been delayed because there are neither export pipelines, nor an adequate refinery currently.

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