desert burner
August 31st, 2009, 11:01 AM
http://www.constructionkenya.com/wp-content/uploads/2009/03/pipeline_construction1-300x205.jpg (http://www.constructionkenya.com/wp-content/uploads/2009/03/pipeline_construction1.jpg)The pipeline is expected reduce the high transportation costs of oil products
The construction of the much awaited oil pipeline from Eldoret to Kampala is expected to kick-off next month, the government of Uganda has announced.
Speaking during a recent media interview, Uganda energy ministry’s commissioner for petroleum, Ben Twodo said work on the terminal and pipeline is expected to start in April.
The government of Uganda has already handed over land to Tamoil East Africa Ltd - the project’s main contractor.
Twodo noted that the project was supposed to begin two years ago but it has been beset by delays.
“Work has been pending since 2007 due to a land ownership wrangle. Fortunately, the disputing sides; Mulowooza and Brothers Ltd and N Shana Company Ltd have since signed a Memorandum of Understanding with the Government that okayed the developments on the land,” said Twodo.
According to Gamal Buargoub, the Project Engineer of Tamoil, construction of the Eldoret- Kampala phase will last 18 months. The project will cost over US $73m by the time of its completion in 2010.
Upon completion of the Eldoret-Kampala section, Turmoil will proceed to construct a pipeline connecting Kigali to Kampala. The development is expected to reduce the high transportation costs of oil products from Kenya to its landlocked neighbours by road.
The construction of the pipeline will be fully funded by the Libyan government and Tamoil, the mother company of Tamoil East Africa Ltd. Tamoil East Africa Ltd won the rights to construct the pipeline in July 2006 after beating off stiff competition from China Petroleum Pipeline Engineering Corporation and MISA-Madhvani International South Africa/Shell Uganda, joint bid.
The company will manage the pipeline for the next 20 year, after which it will be handed over to the the three East African countries.
The construction of the much awaited oil pipeline from Eldoret to Kampala is expected to kick-off next month, the government of Uganda has announced.
Speaking during a recent media interview, Uganda energy ministry’s commissioner for petroleum, Ben Twodo said work on the terminal and pipeline is expected to start in April.
The government of Uganda has already handed over land to Tamoil East Africa Ltd - the project’s main contractor.
Twodo noted that the project was supposed to begin two years ago but it has been beset by delays.
“Work has been pending since 2007 due to a land ownership wrangle. Fortunately, the disputing sides; Mulowooza and Brothers Ltd and N Shana Company Ltd have since signed a Memorandum of Understanding with the Government that okayed the developments on the land,” said Twodo.
According to Gamal Buargoub, the Project Engineer of Tamoil, construction of the Eldoret- Kampala phase will last 18 months. The project will cost over US $73m by the time of its completion in 2010.
Upon completion of the Eldoret-Kampala section, Turmoil will proceed to construct a pipeline connecting Kigali to Kampala. The development is expected to reduce the high transportation costs of oil products from Kenya to its landlocked neighbours by road.
The construction of the pipeline will be fully funded by the Libyan government and Tamoil, the mother company of Tamoil East Africa Ltd. Tamoil East Africa Ltd won the rights to construct the pipeline in July 2006 after beating off stiff competition from China Petroleum Pipeline Engineering Corporation and MISA-Madhvani International South Africa/Shell Uganda, joint bid.
The company will manage the pipeline for the next 20 year, after which it will be handed over to the the three East African countries.