Uganda–Kenya Crude Oil Pipeline

Uganda–Kenya Crude Oil Pipeline
Location
Country Uganda
Kenya
Coordinates 01°33′00″N 31°09′36″E / 1.55000°N 31.16000°E / 1.55000; 31.16000
General direction West to East
From Hoima, Uganda
Passes through Lokichar, Kenya
To Lamu, Kenya
General information
Type Oil pipeline
Partners Tullow Oil
Total SA
CNOOC
Commissioned 2020 (Expected)
Technical information
Length 930 mi (1,500 km)

The Uganda–Kenya Crude Oil Pipeline (UKCOP) was a proposed pipeline to transport crude oil from Uganda's oil fields in the Northern and Western Regions to the Kenyan port of Lamu on the Indian Ocean. Along the way, the pipeline would have picked up more crude oil from the South Lokichar Basin and other oil fields in northwestern Kenya and delivered it to Lamu for export. South Sudan had also planned to construct a pipeline from its Unity State, linking to the UKCOP as an alternative to its only current oil export route through Port Sudan in its northern neighbor Sudan.[1]

Location

The pipeline was to originate in the oil-rich Kaiso-Tonya area, west of the town of Hoima, in western Uganda and snake its way through the northwestern Kenyan town of Lokicor to end at Lamu, on the Indian Ocean. In August 2015, the presidents of Kenya and Uganda agreed on the proposed route of the pipeline.[2] The route, as proposed by the selected consultant, was 1,500 kilometres (930 mi) long.[3][4]

Background

Uganda has proven crude oil reserves of 6.5 billion barrels, about 2.2 billion of which is recoverable.[5] The country has the fourth-largest oil reserves in sub-Saharan Africa, behind Nigeria, Angola, and South Sudan.[6] Buseruka Subcounty in Hoima District has been selected to be the location of Uganda's only oil refinery.[7] 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 Lamu.[8]

From the beginning, the preference of the Ugandan government had been to start with a small production capacity refinery to prolong the production longevity of its new oil discoveries. Initially, this preference conflicted with 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.[9] After much recrimination, in April 2013 the government agreed 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.[10][11]

Construction

The route would have covered approximately 850 kilometres (530 mi) inside Kenya, with most of the route underground.

The pipeline would have been heated and would have used pump stations along the way. Because of the waxy nature of the oil found in both countries, it would have remained solid below 40 °C (104 °F).[12]

The three east African governments of Kenya, Rwanda, and Uganda agreed in principal to construct this pipeline.[13] 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. A single consultant was preferred to maintain consistency in quality across the entire pipeline in Uganda and Kenya.[14] In November 2014, Kenya, Rwanda, and Uganda jointly selected Toyota Tsusho as the consultant for the pipeline. A contractor was expected to be selected in January 2015.[15]

Change of plans

In March 2016, the presidents of Tanzania and Uganda jointly announced plans to build a competing pipeline, the Uganda–Tanzania Crude Oil Pipeline.[16] With these new developments, Kenya is expected to go alone in building its own pipeline from Lochichar to Port Lamu.[17][18]

See also

References

  1. ↑ Biryabarema, Elias (25 June 2013). "Uganda agrees to plan for oil pipeline to new Kenya port". Reuters. Retrieved 9 April 2014.
  2. ↑ Ochieng, Lillian (10 August 2015). "Uhuru And Museveni Strike Deal On Route for KSh400 Billion Oil Pipeline". Daily Nation. Nairobi. Retrieved 12 August 2015.
  3. ↑ Ligami, Christabel (28 August 2015). "Kenya, Uganda strike deal on oil route to export market". The East African. Nairobi. Retrieved 15 August 2015.
  4. ↑ Njini, Felix (28 August 2015). "Kenya Starts Talks With Uganda on Financing for Oil Pipeline". Bloomberg.com. Retrieved 28 August 2015.
  5. ↑ Patey, Luke (October 2015). "Oil in Uganda: Hard bargaining and complex politics in East Africa" (PDF). Oxford: Oxford Institute for Energy Studies. Retrieved 28 April 2016.
  6. ↑ Ojambo, Fred (8 October 2013). "Uganda Seeks Investor to Build $2.5 Billion Oil Refinery". Bloomberg. Retrieved 9 April 2014.
  7. ↑ UMEMD (June 2014). "Progress of Implementation of the National Oil and Gas Policy for Uganda, June 2014" (PDF). Petroleum.go.ug (UMEMD). Retrieved 10 September 2015.
  8. ↑ Ouga, Samuel (14 August 2013). "Uganda's Oil Refinery – An Opportunity for transformation". New Vision. Retrieved 9 April 2014.
  9. ↑ "Uganda wanes off foreign pressures as oil production nears". Daily Monitor. 18 April 2013. Retrieved 9 April 2014.
  10. ↑ Bariyo, Nicholas (15 April 2013). "Uganda Reaches Deal on Refinery, Pipeline". Wall Street Journal Online. Retrieved 9 April 2014.
  11. ↑ Bariyo, Nicholas (25 June 2013). "Uganda, Kenya Agree to Construct Crude Export Pipeline to Port Lamu". Wall Street Journal Online. Archived from the original on 6 July 2013. Retrieved 9 April 2014.
  12. ↑ Ssekika, Edward (8 April 2014). "Uganda, Kenya to Build World's Longest Heated Oil Pipeline". The Observer (Uganda) via AllAfrica.com. Retrieved 9 March 2014.
  13. ↑ "Kenyan President Holds Talks With Ugandan, Rwandan Counterparts". Bernama.com. Archived from the original on 13 April 2014. Retrieved 10 April 2014.
  14. ↑ George Obulutsa, and Jason Neely (28 August 2015). "East African nations seek consultant for crude oil pipeline". Reuters. Retrieved 26 June 2014.
  15. ↑ Omondi, George (13 November 2014). "Toyota wins design deal for Sh350bn Uganda-Kenya crude oil pipeline". Business Daily Africa (Nairobi). Retrieved 29 August 2015.
  16. ↑ Fred Ojambo, and Joseph Burite (1 March 2016). "Tanzania Agrees With Uganda to Run Oil Pipeline to Its Coast". Bloomberg.com. Retrieved 8 March 2016.
  17. ↑ Senelwa, Kennedy (5 March 2016). "Kenya to go it alone in oil pipeline project". The EastAfrican. Nairobi. Retrieved 8 March 2016.
  18. ↑ Wachira, George (8 March 2016). "What Uganda-Tanzania crude oil pipeline pact means for Kenya". Business Daily Africa. Nairobi. Retrieved 8 March 2016.
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