ERHC Energy Inc (ERHE)

[Southern Man]

Great news: But now, Tullow says that Kenya and Uganda have agreed to build a pipeline with a total length of 1,300 to 1,400 km linking Uganda to Lamu at the coast then to South Sudan. The British oil company co-owns blocks 10BB, 13T and 10BA with Canadian Africa Oil Corporation. It has since February 2012 struck oil resources estimated at 600 million barrels with a potential in the upwards of a billion barrels. In Uganda, Tullow is eyeing more than 200,000 bopd gross production. Other than the joint planned investment in a pipeline, Kenya and Uganda are moving forward with a unified commercialisation plan for development of the upstream industry that also entails a modular refinery initially sized for 30,000 bopd.

On Tuesday, Uganda picked a consortium led by Russia’s RT Global Resources to build and operate Uganda’s $2.5 billion crude oil refinery. RT Global Resources, owned by Russian defence conglomerate Rostec, leads a consortium that also includes Russian oil producer Tatneft and VTB Capital, the investment banking unit of Russia’s No. 2 bank VTB. Others partners include South Korea’s GS and Telconet Capital Ltd Partnership.

Tullow Oil, French oil major Total and China National Offshore Oil Corporation (CNOOC) are developing Uganda’s fields. Oil discoveries in Uganda and Kenya by Tullow Oil and gas deposits found off Tanzania and Mozambique have turned East Africa into a frontier for hydrocarbon exploration. Investors have billed the region as the world’s most promising frontier for oil and gas exploration.