Kenya and Uganda presidents to meet oil companies over crude pipeline

NAIROBI, March 20 (Reuters) - Kenya and Uganda's presidents
and oil company executives will meet on Monday to hold further
discussions on a route for a pipeline to transport the two
countries' oil, the Kenyan president's spokesman said on Sunday.
Resolving the pipeline route is crucial to helping oil
companies involved in Uganda and Kenya to make final investment
decisions on developing oil fields.
"President Uhuru Kenyatta will host Ugandan President Yoweri
Museveni tomorrow ... They will discuss the construction of the
Uganda-Kenya oil pipeline, a key plank of the Northern Corridor
Infrastructure Projects," Manoah Esipisu said in a statement.
Last wee, Tanzania's presidency said that Total TOTF.PA ,
which has a stake in Uganda's crude oil discoveries, had set
aside $4 billion to build a pipeline from Ugandan fields to the
Tanzanian coast and that Tanzania wants the three-year
construction schedule shortened.
The comments raised the stakes in a competition to secure
the pipeline with Kenya, which wants Ugandan oil to be exported
across its territory and wants the pipeline to link up with
Kenyan oil fields.
"Kenya favours the northern route through Lokichar, because
as part of the Lamu Port, South Sudan, Ethiopia Transport
(LAPSSET) project, it would transform infrastructure and the way
of life of the people in the towns and counties across its
path," Esipisu said.
He added that officials from Tullow Oil TLW.L , Total and
China's CNOOC 0883.HK had been invited to the meeting.
Total has previously raised security concerns about the
Kenyan route. Sections of the Kenyan pipeline could run near
Somalia, from where militants have launched attacks on Kenya.
But industry officials have also said that connecting Kenyan
fields, which have estimated total recoverable reserves of 600
million barrels, with those in Uganda would make the pipeline
project cheaper because costs would be shared.
Both Kenya and Uganda, which the government says has a total
6 billion barrels of crude, have yet to begin commercial
production.
Tullow Oil and partner Africa Oil AOI.TO first struck oil
in Lokichar in northwest Kenya in 2012.
Africa Oil and Tullow were 50-50 partners in blocks 10 BB
and 13T, where the discoveries were made. Africa Oil has since
sold a 25 percent stake in those blocks to A.P. Moller-Maersk
MAERSKb.CO .