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Kenya-Uganda oil deal | East African Court of Justice

Inside Kenya-Uganda oil impasse: Is Kenya revenging the Tanzania pipeline?

Countries
  • Uganda has moved to the East African Court of Justice (EACJ) over alleged Kenya's move to block it from importing its refined petroleum products.
  • In 2016, Uganda opted to work with Tanzania to develop a pipeline to evacuate crude oil from its fields in Hoima, western Uganda.
  • This dealt a blow to an initial plan to jointly construct a 1,500-kilometre-long pipeline from oil-rich Hoima to Kenya’s Lamu port, a project envisioned to cost about $2.5 billion.

Kenya’s fallout with Uganda on importing refined petroleum products has caused another rift between the neighbouring countries, threatening trade and bilateral relations.

On December 28, last year, Kampala lodged a case at the East African Court of Justice (EACJ) against Nairobi for blocking its plans to shift from purchasing petroleum products from Kenya to importing consignments.

Over the year, Oil Marketing Companies (OMCs) in Uganda have picked imports from Kenya Pipeline’s depots in Eldoret…

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operations featured

Kenya Abandons Dream to Revive Defunct Oil Refinery

Countries
  • The country’s petroleum products distributor, Kenya Pipeline Company (KPC), is set to take over the refinery.
  • It will utilize it for storage of super petrol, diesel, kerosene and the latest now being development of a bulk LPG (cooking gas) reserve.
  • The Kenya Petroleum Refineries Limited was originally set up by Shell and British Petroleum Company BP to serve the East African region in the supply of a wide variety of oil products.

Kenya plans to fully turn its defunct oil refinery into a storage center for imported products, as the dream of refining its own crude oil fades ahead of commercial production projected to commence before 2027.

Both the government and British exploration firm, Tullow Oil, which is seeking joint ventures for the Turkana oil project, are hopeful Kenya will go into commercial oil production in the short-term.

However, it is now clear that the country has no plans …

Kenya oil project

Kenya seeks private sector backing for oil dream

Investing
  • Kenya is putting together incentives that could help mobilize Foreign Direct Investments in upstream oil activities.
  • The latest developments add to efforts by the government to support Tullow Oil in scouting for investors for Project Oil Kenya.
  • India and China are some of the countries where the government is keen on in tapping from.

In May 2023, an announcement by British oil explorer Tullow Oil that it wants out of Kenya's oil dream send shockwaves in the industry as its move threatened to derail the country's journey of becoming a net oil exporter.

At that moment, Tullow Oil partner, a Canadian firm Africa Oil Corp had left the project on concerns over difficulties in finding an investor, who can support Kenya's commercial oil export business.

The other partner TotalEnergies is fast shifting investment focus to oil producing fields in other markets. For Kenya to evacuate its crude, it has to…

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Coral Sul FLNG floating plant deep offshore the Mozambique coast. www.theexchange.africa

Mozambique fires up export terminal targeting LNG exports to Europe

Industry and Trade

According to an article by Maritime Executive published August 17, 2022, since May Senegal and Germany have been working together to fast-track the completion of the BP-led Greater Tortue Ahmeyim (GTA) LNG project. The offshore field straddles the border between Senegal and Mauritania and is set to produce 2.5 million tons of LNG in the first phase. Plans call for output to double to 5 million tons in the second phase.

Earlier, Kosmos Energy, which is developing the GTA field with BP, said phase one is 80 percent complete. Senegal is now reporting that it will be ready to export its first LNG cargo to Europe in 2024 when production at Tortue Gas project is scheduled to start.

“Senegal will be able to sell its quota to Europe, especially Germany already, in the second half of 2024,” Mamadou Fall Kane, deputy permanent secretary of COZ-Petrogas, the government committee that monitors …

SADC extends joint military mission in Mozambique

Mozambique

The Maputo daily Noticias wrote after the SADC summit that a budgetary allocation of US$29.5 million has been set aside for the three-month extension, after high-level consultations and this would mean until at least mid-April.

The SAMIM extension set from mid-January.

Addressing the opening session of the summit, the current SADC Chairperson, Malawian President Lazarus Chakwera, urged regional bloc member states to stick together and ensure that SAMIM remains multidimensional and comprehensive.…