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Uganda to invite bids for oil pipeline

Feb. 4, 2011 at 6:13 AM   |   Comments

KAMPALA, Uganda, Feb. 4 (UPI) -- Uganda is calling for bids from international companies to build a 140-mile oil pipeline to the shores of Lake Alberta to Kampala, the energy minister said.

Ugandan Energy Minister Simon D'Ujanga said his country aimed to attract bidders to build the pipeline from a planned oil refinery near the capital. The pipeline, he said, could link to Kenyan pipelines and later reach Rwanda, Burundi and eastern Congo, Ugandan newspaper The Daily Monitor reports.

"We intend to integrate the entire project to eventually run up to the East African coast," he was quoted as saying.

Uganda signed a memorandum of understanding in November with the Congolese government to join forces on the exploration and development of the Lake Alberta region that straddles their shared border.

Uganda in 2010 was at the center of a deal between Heritage Oil and Tullow Oil. Tullow said in the wake of the deal that accelerated development in the region could yield as much as 200,000 barrels of oil per day from the Lake Albert basin.

Tenders for the pipeline would be issued next month, D'Ujanga added.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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