The Tanga route is shorter and least expensive. I think they backtracked on the kenyan route for reasons other than cost such as security and power play. Am not an insider though.
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Is there something bigger going on here? Perhaps a proxy war between the US and China to see who gets a bigger stronghold in East Africa?
That’s what am wondering
Maybe Tanga route was prescribed by Uncle Sam, for Geopolitical reasons. M7 didn’t have say on it
The region can do with two pipelines. For Uganda, security and cost are key concerns. From a business point of view, the TZ route makes more sense; it is cheaper and more secure. What is more, TZ will use the pipeline route to lay a gas pipeline to Uganda and the great lakes region.
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How does US come in? ata afathali ungesema France since they are the ones financing the project
The larger region has enough consumption to support a refinery.
Thought of the same too. Alshabab would hit back at Uganda by destroying the pipeline.
Uganda wants to build a refinery. Kenya ijenge yake pia??. We are not yet an industrialized nation so the demand for refined petroleum products cannot match the supply. There will be a glut. And dont forget the oil will not be 100% owned by Kenya for the next 25 years or more. So who will finance costs of a new billion dollar refinery?
Over the years,kenya has always assumed it is the only gateway to east and central africa,ke failed to upgrade it’s infrastructure long time ago,we killed the railway for selfish reasons,took years to upgrade the main highways for political reasons.we have always fallen for the myth ,strategic geo position and importance forgetting dar is just around here.
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TZ have massive deposit of natural gas, which Uncle Sam is much interested in. So, the pipeline will eventually be pump natural gass too. Hence the US angle.
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i think ug was justified to go te tz route . There was also a draft report made by ug team after visiting n evaluating both tha tanga n lamu routes.i think the points were:
- our lamu port is barely developed as compared to tanga which is currently operational
- security in NEP(read al shabaab)
- total has categorically stated tht it wants the pipeline through tz n they have already secured a $4bn for the same. I persnally think this was a vital blow to the pipeline passing through kenya as ug would have to fork out cash or seek a loan.
4 the pipeline availability for the tanga route is 99% as compared to 80% for lamu route
5 n also something about lamu waves being too high during certain periods
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Thanks for the info
@4makind ‘malice’, ‘envy’, kwani you think international politics ni muchene ya ploti, I thought you being a seasoned VE you would have an understanding on how some of this ish works. It’s never personal, it’s all about interests, it’s all about where he was presented with a deal that serves his interests better. If there is anybody to be blamed it would be the GOK negotiators… the Kenyan government should take the blame.
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Total had offered to finance it, hata kama ungekuwa m7, ungekataa such a deal kweli?
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So do you think M7 threw a party to celebrate when we struck oil?? we are in competition and this diminishes their influence in the region… anyway its not all black and white
What up with the yellow spots
Getting a financier for the deal was not a problem, after all they would have recovered their funds from operating it. Why else would Ug opt out of deal that would earn/save the country more than USD 2M per day (10*200,000 barrels per day- very prudent estimates Sudan charges RSS USD 24 per barrel) for an investment cost of around USD 2B and cede that to Total which is willing to fork out USD 5B for the controlling rights over a longer route??
I think M7 and cronies might be shareholders of this pipeline hence the need to go it alone. Kenyans are known for digging up everything and might just mess the whole deal. ** these thoughts are not backed by any facts
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Ng’ombe za M7
(potential)oil blocks maybe