French oil giant Total has affirmed its commitment to construct the $4 billion (Sh406 billion) pipeline through Tanga despite the push by Kenya to have Uganda ship its crude oil through the Lamu port.
The company’s general manager Adewale Fayemi said at the two-day East Africa Oil and Gas conference in Tanzania.
“As a company, our position remains that we are going through Tanga. I understand there are issues being discussed but our position remains the same,” Fayemi said.
He said all available options have been carefully considered and the firm is more interested in the Tanga route, which will be cheaper for oil production.
Kenya Thursday put on a brave face in light of the Total’s position. “We will build an oil pipeline, whether we are together with the Ugandans or not,” said Energy PS Joseph Njoroge.
Total’s stand on the issue comes as President Uhuru Kenyatta considers negotiating for the Lamu route through his host President François Hollande during his April trip to France.
President Museveni on March 21 in Nairobi delayed making a final decision on the proposed shipping of its crude oil through Lamu port setting up Kenya and Tanzania for intense rivalry in their quest to become the preferred regional trade and transport hub.
The Nairobi meeting came just weeks after President Museveni and his Tanzanian counterpart John Magufuli reached a deal to build a 1,120-kilometre oil pipeline between Tanga and Uganda where an estimated 6.5 billion barrels of oil were discovered in the Albertine basin near the border with Democratic Republic of Congo.