| Saudi upbeat despite oil in Uganda |  |  |
(Source: The East African) The discovery of oil in Uganda and the independence of South Sudan, also a major oil producer, would have caused panic to many of Kenya’s oil exporting partners. Yet Saudi Arabia, one of the leading oil exporters to Kenya remains confident in its trade ties with Nairobi. For a long time, Saudi Arabia has been the number one exporter of oil to Kenya, which is in billions of dollars. South Sudan is one of the leading oil producers in the world and its independence was seen as a boon to Kenya, which could now obtain the product at an affordable price. And next door neighbour Uganda too struck oil, which both combined with South Sudan’s could drive other traditional exporters out of the Kenyan market. But the Saudi Arabian ambassador Ghorm Said Malhan thinks that is not true and if there is an element of truth in it, there are many avenues of co-operation between his government and Kenya. “No, I don’t think it will affect (our ties) as such because we don’t see our partnership only in the oil business,” Mr Malhan told the Sunday Nation, commenting on the discovery of oil in Uganda and the South Sudan’s independence. He then offered alternatives: “There are other different ways to co-operate. Saudi Arabia can export industrial chemicals and equipment to Kenya as well.” The Gulf nation is one of the development partners of Kenya and it has funded several projects through the Saudi Fund for Development to the tune of about $140 million. Read more here... |
| Egypt, Sudan wary of Nile power projects | | |
(Source: The East African) Countries in East and Central Africa have agreed to use the waters of the River Nile to generate power but are facing resistance from Sudan and Egypt, who are raising concerns about water security. Nile Technical Advisory Committee chairperson Fred Mwango told a Nile Basin Initiative meeting held in Dar es Salaam that Egypt and Sudan were still wary of water security due to their countries’ geographic locations. “Stretching more than 6,600 km from Lake Victoria to the Mediterranean, the Nile is a vital water and energy source for the nine countries through which it flows.  It is important in achieving sustainable socioeconomic development through the equitable utilisation and benefit from the common Nile Basin resources,” Mr Mwango told the meeting. He said the project, expected to take off by 2035, would help reduce power interruptions that have been adversely affecting the economies of most of the Nile Basin countries. “The objective is to focus on facilitating the development of regional power markets among the Nile Basin countries including Burundi, DR Congo, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Uganda,” said Mr Mwango. Read more here... |
| KPC floats tender for design of new pipeline | | |
(SOURCE: DAILY NATION) The Kenya Pipeline Company (KPC) is seeking experts to design and build a new pipeline, weeks after an oil leakage caused a fire in a Nairobi slum that killed more than 100 people.  The firm on Monday floated an international tender for the new pipeline to replace the dilapidated one to increase capacity and meet growing demand. In the tender notice, KPC is inviting proposals for preliminary and detailed design and environmental and social assessment services for a section of its fuel pipeline between Mombasa and Nairobi. Though the actual cost of the project will be known after the design, the energy ministry said it is expected to cost about Sh30 billion. “The selected consultant shall design and supervise the construction of the new pipeline from Mombasa to Nairobi. The pipeline shall suit projected demand up to year 2044,” the tender advertisement read in part. The 14-inch pipeline linking Mombasa to Nairobi has outlived its 30-year lifespan and is prone to ruptures. KPC’s network runs from Mombasa to the town of Nakuru in the west, then branches to Eldoret and Kisumu. Read more here... |
| Kenya could announce oil find by the end of this year say industry experts | | |
(Source: The East African) Could Kenya finally be about to strike oil? As firms pump in millions of dollars into the exploration business, the buzz on both the Kampala and Nairobi grapevines is that Kenya could announce an oil find by the end of 2011.  While this is not the first time there has been speculation to this effect, oil exploration in the country has intensified over the past two weeks. Two weeks ago, French oil multinational Total said it had acquired five offshore oil exploration blocks in the Lamu basin, joining a list of other giant firms that are eyeing openings in Kenya’s oil exploration. Total’s strategy is to strengthen its oil exploration and production presence in East Africa. It has started exploration and development of reserves in Uganda’s Lake Albert region and is active in Tanzania. “Recent discoveries around offshore Mozambique and Tanzania offer a very promising outlook for these Kenyan permits,” said Total’s senior vice president for exploration Marc Blaizot. UK based Tullow Oil, which has subsidiaries in Uganda and Ghana, is expected to begin exploration in Turkana before the end of this month. The London Stock Exchange quoted the BG Group last week as saying it will spend $25 million on a seismic survey to map potential depots of crude oil in blocks L10A and L10B offshore Kenya, beginning November or December 2011. Read more here... |
| Goldman Sachs tips oil to hit $130 | | |
| (Courtesy of the Oman Daily Observer) Singapore — Oil prices will likely rise to about $130 a barrel in the next 12 months as demand in emerging markets such as China and India make up for weak developed world growth, Goldman Sachs said yesterday. Despite concerns about the US economy and euro zone sovereign debt, which have hit crude prices due to an expected fall in demand, the Wall Street giant forecast commodity prices to remain buoyant. At the same time it tipped gold — a safe haven in times of economic uncertainty — to cost $1,860 an ounce in a year, much lower than the record high of $1,921.15 it hit last month. The large emerging economies of the BRICS — Brazil, Russia, India, China and South Africa — are forecast to grow 7.7 per cent this year and 7.9 per cent in 2012. By contrast, advanced economies are projected to expand only 1.7 per cent this year and 2.1 per cent next year, Goldman Sachs said. Brent crude, which is traded in London, is expected to hit $130 a barrel in the next year, from current levels around $112, the bank said. Read more here: http://main.omanobserver.om/node/65027 |
| KPC resumes supply of fuel after fire disaster | | |
| NAIROBI (Courtesy of the Daily Nation) - The Kenya Pipeline Company has resumed fuel supply after halting operations for two days due to the Monday fire tragedy in Sinai slums. Managing director Selest Kilinda said Wednesday engineers had ensured that there were no traces of fuel in the drainage system around the company. “We had a meeting with the oil marketers and resolved to resume pumping of fuel after safety concerns were addressed,” he said. Nanyuki and Tanga roads leading to the company premises in Industrial Area were closed and engineers could be seen inspecting manholes. Mr Kilinda spoke during a visit by the parliamentary committee on Energy and said he did not expect a shortage of fuel. “There are 19 million litres of fuel in the KPC system in Nairobi, and marketers had stock before,” he added. Read more here: http://www.nation.co.ke/News/KPC+resumes+supply+of+fuel+after+fire+disaster/-/1056/1236602/-/u5c5o5z/-/ |
| US gov't prepares to release BP oil spill report | | |
 US (Courtesy of Road Runner) - A key federal report into what caused the worst offshore oil spill in U.S. history was being readied for release as early as Wednesday amid revelations that BP made critical mistakes on the well and failed to tell its partners and the U.S. government when it realized it.An investigation team of the U.S. Coast Guard and the agency that regulates offshore drilling held hearings over the course of a year following the April 20, 2010, Deepwater Horizon tragedy. The Coast Guard-Bureau of Ocean Energy Management Regulation and Enforcement investigation has been among the most exhaustive. Other investigations have faulted misreadings of key data, the failure of the blowout preventer to stop the flow of oil to the sea, and other shortcomings by executives, engineers and rig crew members. Read more here: http://www.rr.com/news/topic/article/rr/9001/51061924/US_govt_prepares_to_release_BP_oil_spill_report |
| KPC loses Sh28m from pipeline burst | | |
NAIROBI (Courtesy of Daily Nation) - Kenya Pipeline Company (KPC) has lost Sh28 million from spilled fuel after a road construction grader accidentally destroyed a pipeline in Mariakani. The pipeline, which transport fuel to Nairobi has spilled 300,000 litres of super petrol. Mariakani residents have been fetching spilled fuel at the scene despite the dangers involved. However, the KPC engineers are repairing the damage.  Read more in: http://www.nation.co.ke/News/KPC+loses+Sh28m+from+pipeline+burst/-/1056/1209398/-/107j3kcz/-/index.html |
| Kenyan Government Seeks Investors For Coal Exploration | | |
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| No Light at Tunnel's End in Uganda’s Fuel Crisis | | |
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