{UAH} Tullow Sees Opportunity Cost If Kenya-Uganda Pipeline Plan Fails - Bloomberg
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While Tullow, which discovered Uganda's oil, has a seat at the talks, the pipeline decision is "above our pay grade," Tim O'Hanlon, the London-based company's vice president for African business, said in an interview.
"For us we think of it as an East African integrated regional infrastructure and the opportunity cost of Uganda and Kenya not cooperating on the pipeline is enormous," he said Wednesday in Tanzania's commercial capital, Dar es Salaam. "A joint pipeline has real tangible economic value, measurable value for individual countries Uganda and Kenya, and East Africa in general."
A Ugandan decision to route the pipeline through Tanzania would probably mean Kenya would need its own facility to transport its oil, according to O'Hanlon. "We are talking about two separate pipelines or a joint pipeline through Kenya," he said.
O'Hanlon said Tullow expects its first production in Uganda about three or four years after the company makes its final investment decision in 2017, and that it will be awarded production licenses in the next few weeks.
"It's taken time but it's going fine and it's of course one of the key issues that we have to have in place before we march into production," he said.
http://www.bloomberg.com/news/articles/2016-03-30/tullow-sees-opportunity-cost-if-kenya-uganda-pipeline-plan-fails
Sincerely,
Brian M. Kwesiga
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"For us we think of it as an East African integrated regional infrastructure and the opportunity cost of Uganda and Kenya not cooperating on the pipeline is enormous," he said Wednesday in Tanzania's commercial capital, Dar es Salaam. "A joint pipeline has real tangible economic value, measurable value for individual countries Uganda and Kenya, and East Africa in general."
A Ugandan decision to route the pipeline through Tanzania would probably mean Kenya would need its own facility to transport its oil, according to O'Hanlon. "We are talking about two separate pipelines or a joint pipeline through Kenya," he said.
O'Hanlon said Tullow expects its first production in Uganda about three or four years after the company makes its final investment decision in 2017, and that it will be awarded production licenses in the next few weeks.
"It's taken time but it's going fine and it's of course one of the key issues that we have to have in place before we march into production," he said.
http://www.bloomberg.com/news/articles/2016-03-30/tullow-sees-opportunity-cost-if-kenya-uganda-pipeline-plan-fails
Sincerely,
Brian M. Kwesiga
--
Disclaimer:Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.To unsubscribe from this group, send email to: ugandans-at-heart+unsubscribe@googlegroups.com
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