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Exploitation of East African Oil and Gas Drew Global Attention
In 2012, the exploitation potential of East African oil and gas drew close attention of the world. A new round of petroleum exploitation upsurge may appear in East Africa.
In March 2012, Kenya announced a petroleum oilfield was discovered at Lake Turkana region in the northwest. This was the first time that petroleum was discovered in the country. The quality of crude oil discovered in this region is almost identical with the light crude oil discovered in Uganda seven years ago. It was estimated that there might be at least 300 million barrels of petroleum along the border of Kenya and Ethiopia. Besides, considerable oil and gas reserves have been ascertained in some other East African countries, including Somalia, Mozambique and Tanzania. Among these countries, Mozambique and Tanzania are deemed as the most prospective countries. According to a conservative estimate, total reserve of oil and gas in East Africa may reach 65 billion barrels of oil equivalents.
Since the beginning of 2012, Eni and Anadarko Petroleum Corporation have discovered seven large-scaled natural gas resources in the east sea of Mozambique. Moreover, Shell and other international companies participated in the acquisition of Cove Energy, which showed interest from international petroleum companies for resources in this area. The main assets of Cove Energy located in Mozambique and Kenya. As the news spreading says that Kenya intends to develop offshore oil and gas, many multinational petroleum companies were prepared to bid for the offshore blocks of the country.
The rapid development of oil and gas industry in East Africa cannot be realized without policy support.
Uganda has approved construction of new refinery plants and decided to construct the oil transmission pipeline from Lake Albert to capital Kampala for the convenience of oil export at Mombasa Port, Kenya. Kenya government also declared to construct “Lamu Port - South Sudan- Ethiopia Transport Corridor Project” (LAPSSET), including an oil transmission pipeline and a refinery plant. In addition, South Sudan is planning an oil transmission pipeline to Kenya.
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