Uganda–Kenya Crude Oil Pipeline

The Uganda–Kenya Crude Oil Pipeline (UKCOP), is a proposed pipeline to be constructed to transport crude oil from Uganda's oil fields in Northern and Western Uganda to the Kenyan port of Lamu on the Indian Ocean. Along the way the pipeline will pick up more crude oil from the Lokichar basin and other oil fields in northwestern Kenya and deliver it to Lamu for export. South Sudan also plans to construct a pipeline from Unity State, linking to the UKCOP, as an alternative to its only current oil export route through Port Sudan in its northern neighbor, the Republic of Sudan.^[1]

Location

The pipeline will originate in the oil-rich Kaiso-Tonya area, west of the town of Hoima, in western Uganda and snakes its way through the northwestern Kenyan town of Lokichar, to end at the Indian Ocean port of Lamu, on the Kenyan coast, a distance of approximately 1,300 kilometres (810 mi). Another proposed pipeline out of South Sudan is expected to connect to the UKCOP near Lokichar to evacuate crude oil from that country to the coast for export.^[2]

Background

With proven crude oil reserves in excess of 3.5 billion barrels, Uganda has the fourth-largest oil reserves in sub-Saharan Africa, behind Nigeria, Angola and South Sudan.^[3] The Kaiso-Tonya area in Hoima District has been selected to be the location of Uganda's only oil refinery.^[4] The country's strategy is to build a refinery that meets the petroleum products needs of Uganda and its regional neighbors and to export the rest of crude oil production via a pipeline to Kenya's port of Lamu.^[5]

From the beginning, the preference of the Ugandan government has been to start with a small production capacity refinery, to prolong the production longevity of its new oil discoveries. Initially, this preference, was in variance from the wishes of the three major exploration companies in the country, which preferred rapid harvesting and export of the crude via pipeline to the Kenyan coast.^[6] After much recrimination, in April 2013, the government finally reached an agreement with Tullow Oil of the United Kingdom, Total SA of France and the China National Offshore Oil Corporation (CNOOC), to build both the oil refinery and the pipeline.^[7][8]

Construction

As of April 2014, environmental impact studies have begun on the Kenyan side. The proposed route covers approximately 850 kilometres (530 mi) inside Kenya, with most of the route, underground. The studies on the Uganda side are yet to begin. Due to the waxy nature of the oil in both countries, it remains solid below 40 °C (104 °F), the pipeline will be heated and will utilize pump stations along the way. If and when completed as proposed, it will be the longest heated crude oil pipeline the world.^[9] The three East African governments of Kenya, Rwanda and Uganda have agreed in principal to construct this pipeline.^[10] In June 2014, the three countries advertised for a single consultant and transaction adviser to oversee the feasibility studies and construction design for the pipeline. The single consultant is preferred, in order to maintain consistency in quality across the entire 1,300 kilometres (810 mi) pipeline in Uganda and Kenya.^[11] In November 2014, the three countries of Kenya, Rwanda and Uganda, jointly selected Toyota Tsusho, as the consultant for the pipeline. A contractor is expected to be selected in January 2015.^[12]

See also

• Uganda Oil Refinery
• Uganda National Oil Company
• Petroleum Authority of Uganda
• Kenya-Uganda-Rwanda Petroleum Products Pipeline

References

External links

• Russians To Build Hoima Oil Refinery
• Full-Scale Oil Production 'To Begin Within Two Years'
• Uganda–Kenya Oil Pipeline Project Back On Track
• East African Leaders Agree To Build Refinery In Western Uganda