Uganda, Kenya Seeking Investor to Build Kampala-Eldoret Pipeline

Uganda and Kenya are seeking bids to build to a 352-kilometer (219-mile) oil-product pipeline after canceling a concession to Libya’s Tamoil East Africa Ltd., Irene Muloni, Uganda’s energy minister said.

Companies interested in building the reversible-flow pipeline linking Kampala, Uganda’s capital, and the western Kenyan city of Eldoret must submit their bids by Jan. 30, according to an advertisement in the state-run New Vision newspaper today.

“We canceled the Tamoil contract,” Muloni said by phone from Kampala, the capital. “If you do not fulfill the terms of an agreement, what do you expect?”

The pipeline for refined petroleum products will be developed under a 20-year build-own-operate-transfer agreement, according to the statement. The pipeline will connect with one from Nairobi, the Kenyan capital, to Eldoret, according to the statement.

Simon Kaheru, who works for public-relations company Media Analyst and handles press inquiries for Tamoil in Uganda, didn’t immediately have a comment when contacted by telephone.

Uganda opted for a reverse-flow pipeline in 2010 after the 2006 discovery of commercial oil deposits, according to the energy ministry.

London-based Tullow Oil Plc (TLW) and partners China National Offshore Oil Corp. and France’s Total SA are jointly developing the country’s oilfields, which they estimate as having 3.5 billion barrels.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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