• 1 hour Oil Prices Inch Higher After Surprise Crude Draw
  • 2 hours Kuwait Greenlights Game-Changing Gas Fields Project After Years of Delay
  • 2 hours Minnesota Begins Public Hearings On Enbridge Line 3 Project
  • 3 hours China Looks To Create National Natural Gas Pipeline Firm
  • 3 hours Total Not In A Rush To Sell Canadian Oil Sands Assets
  • 4 hours DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 5 hours Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 7 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 14 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 19 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 23 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 1 day Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 5 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 6 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
Alt Text

Alberta Banking On An Oil Sands Boom

Alberta has just seen a…

Alt Text

OPEC’s Latest Report Signals An Oil Price Rally

OPEC’s latest report appears to…

Alt Text

Oil Prices Rise On Huge Draw In Gasoline Stocks

Oil prices inched higher on…

Can This Pipeline Unlock East-African Oil Potential?

Can This Pipeline Unlock East-African Oil Potential?

Critical decision over the weekend on one of the world’s most-watched infrastructure developments — in the fast-emerging oil and gas basins of Eastern Africa.

That came from a meeting of the so-called East African Community bloc on Saturday. Where countries including Uganda, Kenya, Tanzania, Rwanda and Burundi got together — with one of the biggest items for discussion being the route for a massive new oil pipeline in this part of the world.

Here’s why this a big deal.

The last several years have seen a lot of oil discovered in both Kenya and Uganda. Onshore Kenya finds by explorers like Africa Oil and Tullow Oil have already reached into the hundreds of millions of barrels. And players like China’s CNOOC are actively developing Uganda’s reserves. Related: The Real Reason Saudi Arabia Killed Doha

None of these mega-plays are selling oil however. Because of a lack of pipelines to move the crude from inland basins to the coast for export.

East Africa’s oil nations have been discussing how best to build such a pipeline. With two major schemes emerging: a Uganda-Tanzania route, and a competing Uganda-Kenya route. The map below shows how the different routes shape up.

Source: qz.com

And here’s the big decision: the East African Community bloc decided this weekend to go with the Tanzania oil pipeline route. Related: Horizontal Land Rig Count Summary 22nd April 2016

One of the biggest drivers in the decision was reportedly France’s Total. Which is a co-developer of Uganda’s oil fields — and which had been concerned about security along the Kenyan export route, especially in areas where the pipe would have passed close to Somalia.

It appears that Total will now get the route they want. With Kenya’s oil developers getting the shorter end of the stick — being left on their own to foot the bill for a stand-alone export pipeline.

All indications were that such a Kenya-only pipeline will now proceed, meaning that Kenya’s developers will at least have a clearer timeline on first production for their fields. The key now will be financing — watch for news here on how groups like Tullow and Africa Oil will pay for this all-important piece of infrastructure.

Here’s to keeping it moving

By Dave Forest

More Top Reads From Oilprice.com:

 




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News