Uganda delaying pipeline project says East African unit of Tamoil

By bne IntelliNews March 31, 2010
The East African unit of Libyan oil company Tamoil said that Uganda has failed to meet its contractualobligations and has delayed the start to extend an oil pipeline from Kenya to Uganda. Landlocked Uganda transports most of its fuel requirementsfrom Kenya's Mombasa port in tankersover several hundred kilometres of road, making supply unreliable, costly andcausing damage to the roads. However, following the discovery of oil in westernUgandathe government has asked for a modification to the design of the pipe to allowfor the reverse flow of oil for export. The government still needs tocompensate landowners along the proposed path of the pipeline according toTamoil.

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