Kenya still at crossroads on best crude oil export plan after flop of deal with Uganda

[Geza Ulole]

KENYA STILL AT CROSSROADS ON BEST CRUDE OIL EXPORT PLAN AFTER FLOP OF DEAL WITH UGANDA

Posted: June 13, 2016 at 9:56 am

Kenyan presidency said the nation is still at crossroads on the best option to transport it’s crude from the Turkana region to the port.

Presidential spokesperson Manoah Esipisu said during a presser in Nairobi that “Our plans for the first oil extraction are on course and we are seized of the planning and implementing options on how to get our oil to the port,”

The country was banking on a transnational pipeline but those plans fizzled out when Uganda pulled out of the bilateral deal, citing security concerns in northern Kenya – the proposed pipeline’s route to the Lamu Port.

Kenya had earlier said it will go it alone but the money for the project, in the light of a burgeoning budget deficit, appears hard to get. Esipisu said President Kenyatta raised the concerns when he met British exploration firm Tullow Oil Chief Executive Aidan Heavey at State House.

- See more at: Kenya Still at Crossroads on best Crude Oil export plan after flop of Deal with Uganda | Uganda Oil

No plans yet for Turkana oil export, says President Uhuru Kenyatta's aide
By Roselyne Obala | Sunday, Jun 12th 2016 at 23:48

President Uhuru Kenyatta's spokesman Manoah Esipisu. PHOTO: FILE

Kenya is exploring options on how to export crude oil from the Turkana oil fields, the President's office revealed yesterday.

President Uhuru Kenyatta's spokesman Manoah Esipisu said Kenya was exploring how best to transport the commodity from Turkana to the port.

From the outset, the company has been facing hurdles in getting the support of the community and at some point, it was forced to suspend its operations in Kerio Valley indefinitely, following what they termed hostility from the area residents.

Locals demanded to be given jobs and tenders, putting at risk the machinery and lives of the company's workers.

The company has been updating the public on its exploration progress as required of firms listed at the London Stock Exchange. It is also a requirement under the licence agreement with the Government of Kenya.

No plans yet for Turkana oil export, says President Uhuru Kenyatta's aide


MY TAKE
It seems the plan for pipeline from Lokichar to Lamu is evaporating so fast!

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[Iconoclastes]

There's a swahili proverb that goes, "kuvunjika kwa mwiko sio mwisho wa kupika". These here are just a minor inconveniences whose solutions will be found sooner than later. Kenya wont shelve her plans to export oil on account of Uganda or budget deficits.

 

[bagamoyo]

Geza,
Hawa jamaa zetu pumzi imekata baada ya kutegemea sana kusafiria ''nyota' ya Coalition of the Willing kufa na sasa Ule ''mwendokasi'' wa kukamilisha miradi haupo wala suala la ''bajeti kubwa bila misaada/grants'' au uwezo wa kupata mikopo hauwezi kusaidia Kenya kukamilisha mradi huu.

 

[1 Africa]

You make me laugh. Were you not talking the same way about Isiolo International Airport until it sprang up?

 

[Mavipunda]

Si walisema ujenzi utaanza soon..imekuaje tena

 

[Iconoclastes]

Si walisema ujenzi utaanza soon..imekuaje tena

Setbacks are inevitable in all projects, especially when grand.
Hata nyinyi pia mtakumbana tu na setbacks, lakini hakuna kukufa moyo.

 

[Geza Ulole]

You make me laugh. Were you not talking the same way about Isiolo International Airport until it sprang up?

evidence?

 

[Geza Ulole]

There's a swahili proverb that goes, "kuvunjika kwa mwiko sio mwisho wa kupika". These here are just a minor inconveniences whose solutions will be found sooner than later. Kenya wont shelve her plans to export oil on account of Uganda or budget deficits.

u have an option to join Uganda and transport ur oil via Tanga! cheapest and shortest option...

 

[1 Africa]

evidence?

Stop acting like you don't remember.

 

[Iconoclastes]

u have an option to join Uganda and transport ur oil via Tanga! cheapest and shortest option...

That idea is as absurd as Rwanda and Burundi using the Kenyan port instead of the nearer Dar port!

 

[Bavaria]

Wajenge refinery wachuje mafuta halafu wayarudishe kwenye mzunguko kwenye uchumi. Halafu wapunguze uingizaji wa mafuta toka nje.

 

[Mbimbinho]

Si walisema ujenzi utaanza soon..imekuaje tena

Kwani ulikuwa bado haujaanza??

 

[Geza Ulole]

Iconoclastes, the distance btn Lokichar n Hoima (where regional pipeline will be) is shorter than that btn Lolkichar n Lamu!

 

[Iconoclastes]

The issue isnt just about the proximity Geza Ulole, look also at the issue of cost. If Kenya links its pipeline with Uganda's to Tanga, it will then have to pay both Uganda and Tz billions for their service, right? That wont make sense!

 

[Geza Ulole]

Iconoclastes, sharing a refinery at Hoima n a pipeline to Tanga with Uganda n South Sudan will b cheaper than building one at Lokichar n building a pipeline to Lamu. Moreover Tullow oil is bankrupt to chest the cost esp. to little reserves of only 600mln barrels of nonrecovable crude!

 

[Xplorer]

u have an option to join Uganda and transport ur oil via Tanga! cheapest and shortest option...

Yes this is the best option for them and i am sure Total will be ready to buy this one,so funds will not be a problem anymore to them.Tatizo la Kenya ni roho mbaya hata kwenye vitu ambavyo havihitaji roho mbaya,they think Tanzania will benefit much on this option and they dont want that to happen!

Ukiwaambia kuhusu hii option utasikia wanasema "no way" ukiwauliza kwanini wanakuwa hawana majibu.However it is clear that when a refinery plant in Uganda is ready,Kenya will have no option than to transport their "tiny oil" to Malaba and later to be transported to Tanga for export since the pipeline will be ready by that time.

By the way naona wanaanza kulegea taratibu kwa kufuata ushauri wa wataalam,Zile za kusema tayari wameshapata funds,sijui they will go with it alone zilikuwa mbwembwe tu kuwafurahisha wananchi kuonyesha nothing is wrong after loosing this deal to Tanzania especial at this election period,sisi hatuna roho mbaya bado tunawapa nafasi ya kujiunga na LAPSSET yetu...ha ha ha aaaaaAaaaaa

 

[Geza Ulole]

Xplorer hawana jinsi, hata sensible Iconoclastes anajua ila ana-pretend economies of scale of oil production do not matter!

 

[mwaswast]

Xplorer hawana jinsi, hata sensible @iconoclastds anajua ila ana-pretend economies of scale of oil production do not matter!

Unapiga kelele buda na hata hiyo yenyu haija anza sijui pupa zako mingi ni za nini ama labda ni maendeleo unatamani kabla hujazeeka sana? The current infrastructural projects you enjoy in your country are what I enjoyed as a boy 20yrs ago, ask Kenyans hapa JF and you can keep on hating on our lapset whilst yours has no foundation stone even ama nadanganya Geza?

 

[eliakeem]

Ahaaaa haaaa hhaaaa,
wamekubali kukaa chini. Waunganishie pipeline kuja uganda halafu Tanga. Sikuzote roho mbaya haijengi. Mafuta yakipitia Tanga, mradi utawezekana kutekeleza na pia nchi yenu haitakuwa na Stress.

 

[Geza Ulole]

Unapiga kelele buda na hata hiyo yenyu haija anza sijui pupa zako mingi ni za nini ama labda ni maendeleo unatamani kabla hujazeeka sana? The current infrastructural projects you enjoy in your country are what I enjoyed as a boy 20yrs ago, ask Kenyans hapa JF and you can keep on hating on our lapset whilst yours has no foundation stone even ama nadanganya Geza?

Hahah u r lying! but Kenya has never had a $4 bln investment since her existence! Moreover this is what happening in Tanzania

TPDC, oil, gas investors to meet ahead of new LNG plant outlook

TPDC Director General James Mataragio.


Construction of the 10-milliontonne a year LNG plant in East Africa’s biggest holder of natural gas reserves after Mozambique is yet to be decided and government officials say a decision on HGA is vital for the investment.

TPDC Director General James Mataragio told the ‘Daily News’ that the meeting, scheduled for Wednesday, is meant to start negotiation and basic understanding of hosting government agreement for the planned LNG plant.

The meeting will be attended by Royal Dutch Shells, which acquired BG Group, Statoil, Exxon Mobil, and Ophir Energy, both planning to build the onshore LNG export terminal in a joint venture with TPDC.

“The HGA is expected to define commercial and technical parts of the investment,” said Mataragio. Construction of the 15-billion-US dollar export plant is estimated to be complete by 2020 and business experts say the two Africa’s resource-rich eastern coast countries - Tanzania and Mozambique -- had turned potential targets to fuel Asia’s industrial boom.

Over 2,000 hectares of land have been allocated at Likong’o Village in Lindi for the construction of the planned LNG export terminal. The government has, however, set aside an additional 17,000 hectares near the proposed area for the two-train LNG terminal, particularly for industrial playgrounds.

Despite global concern over the prolonged fall in gas price, Tanzania maintains that it has not been affected with the new development. All natural gas production is designated for domestic consumption.

Nevertheless, TPDC has said that the dynamics in the global oil and gas prices “are not a threat but an alert’’ for the government to reposition itself ahead of the huge investment. Media reports said the slump in the gas prices is likely to hold promise of gas-fired prosperity in the developing resource rich countries.

After a continued drop, gas prices rebounded somewhat recently along with other commodities -- and TPDC Director General articulates that Tanzania still has a promising future.


TPDC, oil, gas investors to meet ahead of new LNG plant outlook

That $ 15 bln worth of investment is an FDI amount Kenya will not have for the next 50 years! Come rain come sun!


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