Uganda discovered crude oil within its boundary back in 2006 through an initiative led by Tullow Oil Plc. and its partners. The site is estimated by the U.S. Energy Information Administration to hold about 6.5 billion barrels of oil.
When the country starts to mine the crude oil, it is bound to face some logistics challenges. The greatest of which is transportation, as water transport is the cheapest means of transporting petroleum. Uganda’s main problem is that the country is a landlocked country, with the nearest water gateway to the world market being the Indian Ocean. The country has to pass its commodities through its neighbors Kenya or Tanzania, to access the India Ocean waterways.
While Uganda has historically had a cordial relationship with Kenya and heavily depend on Kenya’s railway and pipeline to received and send its imports and exports. The recent insecurity development in Kenya has made Uganda want to consider its options.
Uganda is currently contemplating laying its pipeline through Kenya to the coastal cities of Lamu and Mombasa or through Tanzania to the coastal city of Tanga. According to the official statement, the country …read more