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Uganda picks Tanzania for oil pipeline, drops Kenya plan | Uganda picks Tanzania for oil pipeline, drops Kenya plan |
(about 13 hours later) | |
Landlocked Uganda has announced it will build a major pipeline to export its oil through Tanzania. | Landlocked Uganda has announced it will build a major pipeline to export its oil through Tanzania. |
Uganda had planned to send the pipeline through Kenya, which wanted a joint facility for oil from its own fields that are under development. | Uganda had planned to send the pipeline through Kenya, which wanted a joint facility for oil from its own fields that are under development. |
The pipeline will now be routed further south, with concerns about possible attacks by Somalia's al-Shabab Islamists said to be a factor. | The pipeline will now be routed further south, with concerns about possible attacks by Somalia's al-Shabab Islamists said to be a factor. |
The group has attacked targets close to where the pipeline would have passed. | The group has attacked targets close to where the pipeline would have passed. |
Uganda announced its decision in Kampala at a summit of the East African Community bloc, which groups Uganda, Kenya, Tanzania, Burundi, Rwanda and South Sudan. | Uganda announced its decision in Kampala at a summit of the East African Community bloc, which groups Uganda, Kenya, Tanzania, Burundi, Rwanda and South Sudan. |
The 1,400km (800 miles) pipeline will connect Uganda's western region near Hoima, where big oil reserves have been discovered, with Tanzania's port of Tanga. | The 1,400km (800 miles) pipeline will connect Uganda's western region near Hoima, where big oil reserves have been discovered, with Tanzania's port of Tanga. |
The project is expected to cost about $4bn (£2.8bn) and create 15,000 jobs. | The project is expected to cost about $4bn (£2.8bn) and create 15,000 jobs. |
The discovered oil reserves in Uganda are estimated at some 6.5bn barrels, and the country expects to start production in 2018. | The discovered oil reserves in Uganda are estimated at some 6.5bn barrels, and the country expects to start production in 2018. |
France's Total, China's CNOOC and the Anglo-Irish company Tullow hold most of the licences. | |
Kenya, which has also struck oil, had wanted the pipeline to pass through its territory. | Kenya, which has also struck oil, had wanted the pipeline to pass through its territory. |
Uganda had initially signed such a deal, but Total later questioned the plan over security concerns, the BBC's Catherine Byaruhanga in Kampala reports. | Uganda had initially signed such a deal, but Total later questioned the plan over security concerns, the BBC's Catherine Byaruhanga in Kampala reports. |
Ugandan Foreign Minister Sam Kutesa said on Saturday that the cost was also a factor in choosing the project. | Ugandan Foreign Minister Sam Kutesa said on Saturday that the cost was also a factor in choosing the project. |
"We considered Tanga oil pipeline route based on a number of aspects - among them it is the least cost," he told the AFP news agency. | "We considered Tanga oil pipeline route based on a number of aspects - among them it is the least cost," he told the AFP news agency. |
Reports also suggest that Uganda backed the Tanzanian route because the country's port of Tanga is already fully operational, while Kenya's Lamu port is still being built. | Reports also suggest that Uganda backed the Tanzanian route because the country's port of Tanga is already fully operational, while Kenya's Lamu port is still being built. |
When completed, it will be East Africa's first major oil pipeline. | When completed, it will be East Africa's first major oil pipeline. |
Meanwhile, Kenya said it would build its own pipeline from Lokichar, in the north-east, to Lamu. | Meanwhile, Kenya said it would build its own pipeline from Lokichar, in the north-east, to Lamu. |