Pipeline: Uganda, Kenya to partner

2010-09-08 14:03

Kampala - Uganda will partner Kenya and an Indian multinational to construct a refinery and pipeline for its oil, an official told AFP Wednesday.

President Yoweri Museveni has "given green light for the joint venture", his press secretary, Tamale Mirundi, said.

Mirundi said that Kenya's Foreign Minister Moses Wetangula had led a team for talks with Museveni on Monday which were also attended by Prashant Ruia, the CEO of the Indian conglomerate ESSAR.

"The meeting was attended by responsible officers from Ugandan side and it was agreed that the parties form a joint venture in the oil refinery and the pipeline," Mirundi said.

"It is in order to create a framework to work out details on how to reconfigure the infrastructure from Kampala to Mombasa, through Eldoret. There is need to have a reverse flow system from Kampala and Eldoret," he said.

Kenya has a pipeline running from its coastal town of Mombasa to Eldoret near the border with Uganda.

"Infact Kenyan Energy Minister Kiraitu Murungi said there is no need for them to import oil from the Middle East when Uganda has the capacity to supply them," Mirundi said.

Uganda has found oil in the Lake Albert region which holds roughly two billion barrels but is currently locked in a tax tussle with Anglo-Irish Tullow Oil and Canada's Heritage Oil.