After months of negotiations Uganda decided to route a multi billion dollar crude export pipeline through Tanzania, forcing neighboring Kenya to develop a separate link to transport its own oil, Bloomberg reported.
It was decided in a Summit held at the end of April, in which the East African Community bloc, which groups Uganda, Kenya, Tanzania, Rwanda, and Burundi, in Kampala confirmed Uganda would take the Tanzanian option.
Picking a route is vital for oil firms to make final investment decisions on developing reserves found in Uganda and Kenya, which are among a string of hydrocarbon finds on Africa’s eastern seaboard. Tanzania has found gas offshore, according to Reuters.
Land-locked Uganda, which found oil in a western region around Hoima, said in 2015 it would build a pipeline through Kenya, linking its fields to Kenyan discoveries in Lokichar and on to Lamu on Kenya’s north coast. But in March 2016, Uganda changed tack, saying it was planning a pipeline from Hoima to Tanga on Tanzania’s coast, prompting a last-minute push by Kenya for another switch.