Kampala, Uganda: Even though the Kenya route has been almost finalized to export oil, but Uganda government is also considering to make it through Tanzania provided it is a cheaper alternative.
Last month the two countries discussed to implement the project via north Kenya and the investors at both ends are calling it a positive step.
However, one Uganda investor, France’s Total, talked about the possible Tanzania route would be a better option. Ugandan energy ministry official Robert Kasande replied to ensure least cost the government is also looking at Tanga in Tanzania.
If Tanga in Tanzania is comparatively cheaper than Lamu in Kenya, the government would go with it, added Kasande speaking on the sidelines of oil and gas conference in Kampala.
The joint statement between Uganda and Kenya also raised issue of guaranteeing security, financing as well as cheaper on the Lamu route compared to other routes. It is understood too both the presidents are looking as committed to the option.
One important issue was highlighted on the Kenyan route. In one region the Somalia border is nearby and this is a concern in terms of security as Islamist militants from the bordering Somalia have earlier launched several attacks on Kenya. Investors may be thinking twice before financing the project.
CNOOC of China is also one of the investors in Uganda and Britain’s Tullow Oil has a stake in the company. It is also developing Kenyan fields partnering with Africa Oil.
Further statements are being awaited from Uganda and Kenya presidents.
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