AfDB to support EA joint oil infrastructure plan

Kenya, Uganda and South Sudan are negotiating a joint oil infrastructure plan that would help them coordinate the construction of oil refineries and an oil pipeline, Kenyan PrimeMinister Raila Odinga said.Speaking about preparations for the drilling of oil in the East African nation, Odinga told Parliament that talks were under way with the African Development Bank (AfDB) for a joint Tripartite Community that would serve as the focal point in the development of a regional oil infrastructure plan.“It will help to develop a mechanism for sharing of oil resources within the Community,” Odinga told parliamentarians late on Wednesday during his weekly appearance in the House to address pressing national matters.Under the joint infrastructure mechanism, the three countries would also discuss the construction of the oil pipeline that would enable Uganda to discharge its crude oil through the Mombasa Port. Engineers are currently discussing the possibilities of creating an oil pipeline that would help to transfer the commodity through various temperaturesin Kenya without suffering from a blockade. According to informed sources, there are chances of the crude oil from Uganda facing transportation difficulties into Mombasa because of its thinness. Odinga said Kenya was also keen to develop an oil infrastructure and exploit the commodity in a manner that would benefit the local communities. He warned of an oil curse, if the newly discovered oil in Turkana is not well utilized.British oil exploration firm, Tullow Oil, discovered oil in Kenya’s Turkana region, on block 10, known as Ngamia 1 block, which became Kenya’s first ever commercial quantity find. The London-based firm said its engineers drilled 1,041 meters deep before striking oil.Odinga said the government has already taken steps to ensure that all natural wealth discoveries in the country take care of the interests of the local population. “We have already undertaken consultations with the community elders in Turkana,” Odinga said. He said there were also plans to bring legislation that govern the exploitation of oil in the country.Kenya launched the Lamu-South Sudan-Ethiopia Transport Corridor (LAPSSET) to provide a greater regional transport link to the proposed port of Lamu. It would include the construction of an alternative oil pipeline from South Sudan to Lamu in Kenya. A joint rail road is also planned to back the project in the three countries. Ethiopia continuesto explore oil in its Somali region where oil firms believe high potentials exist. South Sudan is the region’s proven oil producer, but Uganda, the latest entrant, is also preparing for the drilling of the commodity following its discovery there.Uganda has been planning an oil refinery on its side of the border in preparation for the shipment of refined commodities.