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France's Total considers Tanzania pipeline route for Ugandan oil

Published 2015-09-15, 06:45 a/m
© Reuters.  France's Total considers Tanzania pipeline route for Ugandan oil
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By Elias Biryabarema
KAMPALA, Sept 15 (Reuters) - France's Total TOTF.PA , an
investor in Ugandan oilfields, said it is considering a pipeline
through Tanzania as a possible way to export Ugandan oil,
challenging Uganda's proposal of a Kenyan route which has raised
some security concerns.
Kenya and Uganda last month announced a decision to link
Uganda to Kenyan oil finds and then to Kenya's north Lamu coast,
a move that had been seen as helping oil firms make their
investment decisions. ID:nL5N10L36A
Experts say that linking Kenyan and Ugandan fields could
prove cheaper as all developers would share one pipeline. But
the northern Kenyan route has also raised security concerns as
it lies near Somalia, from where Islamist militants have
launched attacks on Kenya.
One alternative idea has been for a pipeline further south
in Kenya that would end in the port of Mombasa, while another
route would run from Uganda to neighbouring Tanzania.
"We're exploring all technically and economically viable
options and Tanzania is among those options," Total Uganda
spokeswoman Ahlem Friga-Noy said.
She said the Tanzania route extended from Uganda's western
town of Hoima to Tanga on Tanzania's coast. She did not give any
further details about why the company was considering the route.
China's CNOOC 0883.HK is also investing in Uganda, while
Britain's Tullow Oil TLW.L has a stake there and is also
developing Kenyan fields with partner Africa Oil AOI.TO .

(Writing by Edmund Blair; editing by Jussi Rosendahl)

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