Museveni wants South Sudan crude pipeline to Kenya’s Port Lamu to go through Uganda
PaanLuel Wël
Kampala (Platts)–6Mar2012/221
Uganda’s President Yoweri Museveni has said that it would be better if South Sudan’s proposed oil pipeline to transport the country’s crude to Port Lamu in Kenya passes through Uganda, Uganda’s local media reported Tuesday.
The independently owned Daily Monitor Newspaper cited Museveni telling Kenya’s Premier Raila Odinga who called on him at his State House in Entebbe that he understood Kenya’s position since the newly-independent South Sudan is in urgent need of a functional oil pipeline within one and a half years.
Uganda, which has discovered huge oil deposits in its own Lake Albert Rift Basin and is in the process of commencing commercial oil production, had hoped to jointly construct a pipeline with South Sudan, and use Uganda’s planned oil refinery to process crude from South Sudan and then export it to Western world via Port Mombasa in Kenya, according to oil analysts.
The report also said that Museveni had earlier advised South Sudan to build its own refinery rather than having its crude oil refined in Kenya as that would create jobs for South Sudan, and that he was surprised by Juba’s deal with Kenya that will have the oil resource refined in Kenya.
The South Sudan government said Sunday it had formed a joint venture with Kenya and Ethiopia to build a $1.8 billion transport corridor that will include an oil pipeline to export crude oil from landlocked South Sudan to Port Lamu in Kenya.
In January, South Sudan shut oil wells producing 350,000 b/d alleging that northern Sudan had confiscated crude equivalent to $815 million.
South Sudan broke away from united Sudan in July last year taking 75% of the total oil produced in Sudan then, but continued to depend on the northern oil pipelines for its oil exports.
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Uganda’s President Yoweri Museveni has said that it would be better if South Sudan’s proposed oil pipeline to transport the country’s crude to Port Lamu in Kenya passes through Uganda, Uganda’s local media reported Tuesday.
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