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Uganda to export its oil through Tanzania

Discussion in 'International Forum' started by Ngongo, Jan 21, 2010.

  1. Ngongo

    Ngongo JF-Expert Member

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    Tanzania is set to benefit markedly from the discovery of oil in Uganda. A London-based oil prospecting company disclosed this week that Uganda was likely to export oil through Tanzania.
    Tullow Oil Plc, which operates in 15 African states, said in a statement to British media this week it plans to produce its first oil from the Kasamene field in Uganda this year with output rising to at least 5,000 barrels a day in 2012 and then 150,000 barrels, according to estimates by McDade.
    Then, Tullow’s Chief Executive Officer Aidan Heavey added: Detailed plans regarding field exploration, a refinery, power generation and a possible pipeline across Tanzania or Kenya to export oil, will be presented to Uganda’s government within the next three weeks.
    Tullow Oil Plc plans to bring in one or two partners to help with the estimated USD5bn cost of developing its Ugandan assets after derailing Eni SpA’s attempt to gain a foothold in the east African nation.
    Tullow, the UK explorer with the most licenses in Africa, wants to sell as much as 50 per cent of three combined blocks in the Lake Albert region, according to sources.
    “The Ugandans want to make sure that they have a number of firms involved in the energy sector,” Tullow’s Chief Executive Officer Aidan Heavey said in a conference call this week. “They don’t want one company monopolising the whole industry,” he said.
    International energy producers are competing for assets in Africa as traditional fields go into decline and parts of the world such as Kurdistan remain difficult to exploit. Tullow exercised pre-emption rights on Monday over fields being sold by Heritage Oil Plc to Eni, a decision described by Heavey as “pretty inevitable.”
    Tullow gained 2.2 per cent to 1,369 pence in London trading. The stock doubled in value last year. Heritage advanced 7.4 per cent to 552 pence, the highest since Oct. 14, while Eni rose 0.5 per cent to 18.45 euros in Milan.
    The development of Uganda’s Lake Albert assets will require investment of more than USD5bn over the next decade, Tullow’s Chief Operating Officer Paul McDade said in a telephone interview.
    SOURCE: THE GUARDIAN
     
  2. N

    Nanu JF-Expert Member

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    Neema hizo zaja!!!!!
     
  3. bona

    bona JF-Expert Member

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    i dought if it will materialise, for my views, they should concentrate on delivering the first barrel of crude oil then start media songs as i think all these media"mumbojumbo" may end up empty with no oil discovered.

    i wonder why this has been the trend for most african country to start singing song about oil discoveries while nothing is in the barrel to the extent of causing panic in the society like here in tz when zanzibar and tanzania mainland get involved in bitter tug of war for an empty oil discovered, to me its very disturbing to hear these kind of news while nothing has been obtained.

    i am start getting feeling there is a motive to brainwash people not to think about ways of working hard to end up indulging in vain wishes.
     
  4. Ibrah

    Ibrah JF-Expert Member

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    Kweli ni neema Ninu maana hatustahili Waganda kupitishia mafuta yao kupitia kwetu TZ. Swali ni kuwa, je watatumia njia gani? Labda ndege! Maana Reli yetu iko hoi bin taaban, yaani hapo inabidi tujipange sawasawa na tuifufue Reli vinginevyo Museveni yatamshinda maana hata kuamua kupitishia kwetu hayo mafuta ni neema tu.
     
  5. Wacha1

    Wacha1 JF-Expert Member

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    Economically ni gharama kupitisha Tanzania. Rahisi zaidi wakijenga pipe line kwenda Mombasa au popote through Kenya Tanzania hilo bomba itakuwa mbali kidogo.

    Lakini kwa nini Uganda wanataka kupitisha Tanzania na sio Kenya? Kuna kitu hapa ambacho sidhani kipo sawa.
     
  6. Mahesabu

    Mahesabu JF-Expert Member

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    Jan 22, 2010
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    Umenena vyema...sababu za UG kupitishiaTZ bila shika ni usalama wa bidhaa yao...iwe kwa pipeline,railway,barabara n.k
    kwa KNY tumeona wakidiriki kung'oa hata reli na kukata waya za simu wakati wa machafuko....
    hivyo basi ni busara na faida zaidi kupitisha bidhaa TZ kwenye usalama wa uhakika kuliko kuhatarisha bidhaa kwa kufata njia fupi isiyo salama
     
  7. A

    Alpha JF-Expert Member

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    Oil has been discovered in Uganda already.
     
  8. Juma Contena

    Juma Contena JF-Expert Member

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    Yeah but the're making too much noise of that oil already, i met an Ugandan man recently and he tried to put some perspetive on that resource. Apparently it was discovered since the late 70's but Europeans were waiting for a stable government before they could exploit it. He argues this is just another African excitement for litle income Uganda could make more money by exploitng other economical ways to better the welfare of its people. According to him before the pipe has gone through to any port Uganda should just shut up. Finally he finished by saying where there is oil you'll see the big boys pouncing each others for the control not some small firms. Does he have a case i dont know?
     
  9. Ngongo

    Ngongo JF-Expert Member

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    Italian oil giant ENI set to build Uganda-Dar pipeline



    An Italian oil conglomerate, ENI, disclosed on Monday it is to invest $13bn in the Ugandan crude oil industry, and that it is to build an oil pipeline from Uganda to the port of Dar es Salaam.
    News Agencies quoted an Italian daily newspaper on Monday as reporting that the Italian oil group ENI plans to invest $13bn (9.2 billion euros) to develop hydrocarbons in Uganda, after acquiring rights from Canada's Heritage group.
    ENI, which has acquired half ownership of two hydrocarbon production sites in northeastern Uganda from Heritage, plans to build a refinery and an electric power station, ENI chief Paolo Scaroni told the newspaper La Repubblica.
    The two sites in the Lake Albert basin are estimated to contain more than one billion barrels of oil. British firm Tullow Oil owns the other half.
    ENI and Heritage signed a contract in November last year under which ENI will acquire Heritage's half ownership of the two sites for $1.35bn (950,000 euros) plus a possible additional $150m in cash or assets, depending on certain conditions.
    The Italian group will also rehabilitate a colonial-era rail line between the Ugandan capital Kampala and the Kenyan port of Mombasa and build a new pipeline to Tanzania's commercial capital Dar es Salaam, Scaroni told the paper.
    The Ugandan government will overrule a bid by Tullow to exercise its preemption right, Energy Minister Hillary Onek said last week.
    A competing plan to build an oil pipeline from Uganda to the Port of Mombasa has been dropped. The Ugandan government considered plans to building an oil pipeline to Dar es Salaam after plans for a similar pipeline to Mombasa, in Kenya, came to a halt.
    Since early 2008, two London-listed oil companies, Tullow Oil and Heritage Oil, had made sizeable discoveries in Uganda's prosperous Lake Albert region, which the government now estimates to hold recoverable oil reserves of as much as two billion barrels. Mindful of the discoveries, Ugandan authorities have been considering different options for commercializing the reserves.
    For some time Kampala had been in talks with the Kenyan government over the possibility of extending and upgrading the Mombasa-Eldoret pipeline, to the capital city, and enabling it to reverse the flow from Kampala to Mombasa. Libya's Tamoil, which had been contracted to develop the Kampala-Eldoret link, had designed the project to enable flows going in both directions. At the planned capacity of only 24,000 barrels per day (bpd), the pipeline is unlikely to match the potential of the Lake Albert Basin, though the government is keen to refine oil domestically and supply oil products to the local market and export the remaining volumes to neighbouring countries.
    The Eldoret-Kampala pipeline, which is supposed to be built under a public-private partnership (PPP) between Tamoil and both the Ugandan and Kenyan governments, is primarily aimed at securing Uganda's energy supply. Secondly, it is designed to reduce the road damage done by fuel-carrying trucks.
    Uganda and Kenya signed a memorandum of understanding on the pipeline's construction 14 years ago, back in 1995.
    The project however, has since been dogged by setbacks owing to financial difficulties, contract irregularities and diplomatic tensions.
    Tamoil announced in June 2009 that groundwork on the pipeline was expected to begin in July 2009, with completion scheduled for 2011. Despite being two years beyond commissioning it seems that to date, construction work at the pipeline has not yet begun.
    The lack of an agreement has now pushed Uganda to consider building a pipeline to Tanzania instead.
    SOURCE: THE GUARDIAN
     
  10. G

    Geza Ulole JF-Expert Member

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    Jan 27, 2010
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    Kenya is irrelevant right now on Uganda dependence for its logistics. As a matter of fact Heir Kaguta :D has repeatedly insisted on using Tanga Port for Uganda's exports! Just wait when he gets first oil dollars you will see him implementing his master plan with a railway extension from Arusha to Musoma on the way to Entebbe across lake Victoria! Meanwhile Rwanda and Burundi have secured $4 bio. for Isaka-Kigali-Bujumbura Railway that the construction is to start this March! I hope we will know where we stand from there and may be it will tone down the exaggerations your media put on the outlook of that "giant but looser Kenya"
     
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