Delayed construction of a 1,120-kilometer-long, $4.5-billion crude-oil pipeline in East Africa changed course when Uganda proposed a second, 1,410-km-long, $4-billion route through Tanzania to the Indian Ocean—abandoning the original agreement to go through Kenya.
The original agreement between Kenya and Uganda was to construct a pipeline to transport crude oil from Hoima in Uganda’s Lake Albert region through Lokichar, Kenya—where Tullow Oil Plc, London, discovered an estimated recoverable 600 million barrels—and terminating at Lamu Port, which is under construction to expand capacity.