August 7 2018

United Kingdom, Australia lead race for $3.5 billion oil tender

Source: Asoko Insight

Oil and gas industry in East Africa is growing and proper management could only make the regional economy get better results.

Two firms are battling for a $3.5 billion tender to oversee the construction of a pipeline between Tanzania and Uganda, estimated to be 1,443km long with 1,147km of it being on the Tanzanian side.

The firms, Penspen from the United Kingdom and WorleyParsons from Australia are among seven other firms that had expressed interest in the East African Crude Oil Export Pipeline project. However, these two are currently leading in the race.

Both firms have a wealth of experience in project management as well as a significant presence in the East African territory. They have overseen major projects in Kenya and Uganda and have been recommended for familiarity and excellence in their operations. The tender opportunity will strengthen the portfolio of either company and a chance to expand their operations in Africa.

The crude oil pipeline is expected to unlock significant potentials in the energy sector.

Many African countries are depending on improved infrastructure to drive their economic goals and lure foreign investments. Oil and gas demand in East Africa has offered numerous opportunities to international companies to which have expressed interests to venture into the market.

The cooperation between Uganda and Tanzania to construct a crude oil pipeline has enabled Uganda to export oil within the East African Community (EAC) borders. Kenya has also tapped into crude oil with Lokichar basins and joined Uganda as the two nations producing oil in East Africa. Tanzania continues to make efforts to better its operations in natural gas which has boosted the country’s economic growth.

East Africa has massive oil deposits that could reward the region bountifully. Sudan also has oil deposits which could transform the country’s economy should they be managed well. Oil exploration in Uganda continues to be a massive task for oil companies that have invested millions of dollars in the process. It has been debated further that East Africa could have potential oil deposits to compete with the secondary sources in West Africa.