Uganda says it has chosen Tanzania for its oil pipeline route to avoid higher costs in Kenya.
This comes before oil experts present a detailed report to the presidents of Uganda and Kenya at a regional summit in Kampala.
Details of why Uganda preferred to have its crude oil pipeline through Tanzania will be laid on the table this week. Kenya had been in talks with Uganda but lost the bid
Uganda says the route through Kenya has many security risks
This is mainly because of proximity to troubled Somalia which is home to Islamist militants responsible for terrorist attacks in the region
The Tanzanian route to its Tanga port is also preferred by French Oil company Total, which has been contracted to build Uganda’s pipeline.
Kenya which also recently discovered oil had hoped to partner with Uganda to have a joint pipeline.
But with Uganda preferring Tanzania, it means Kenya will have to build its own
Uganda has an estimated 6.5 billion barrels of oil deposits and plans to start exploitation in 2018
Uganda’s decision for its oil pipeline has ended months of speculation but some experts say it is a test to regional relations.
When both Uganda and Kenyan Presidents meet for a summit this Friday in Kampala, the matter is expected to be priority on the agenda.
CCTV’S Isabel Nakirya reports
