Uganda will be able to get oil-pipeline funding, Stanbic says
Uganda will be able to get the cash it needs to build a planned $3.5-billion oil-export pipeline, with financiers ready to commit funds as soon as a final investment decision is made, according to Stanbic Bank Uganda.
The project has attracted “a lot of interest” and raising capital “is not a problem,” Stanbic CEO Patrick Mweheire said Tuesday in Kampala. The pipeline, which is crucial to plans by Total, Cnooc and Tullow Oil to tap the country’s first oil, has faced opposition from lobby groups who have voiced concern over its potential environmental impact.
Uganda, with discoveries of six-billion barrels of oil resources, is targeting the start of production in 2022, while the 216 000 bbl/d pipeline would begin operations the following year. The government has said that an final investment decision (FID) to develop the finds and build the pipe could unlock as much as $20-billion of investment.
Standard Bank Group said in June it was reviewing a request by lobbyists to withdraw from funding the proposed pipeline. The lives of as many as 14 500 people along its route could be affected, according to the request, which was signed by organizations including UK-based Global Witness.
Stanbic and Japan’s Sumitomo Mitsui Banking are the lead arrangers for financing of the 900-mile conduit, seeking to raise $2.5-billion in debt funding. Total, Cnooc and Tullow will also provide funds, as will the government.
“There are a lot of people sitting on the sidelines; funding for the pipeline can be raised,” Mweheire said. “We are all working collectively for FID.”
An investment decision on the pipeline, which would run from Hoima in Uganda’s oil region to the Tanzanian port of Tanga, is targeted later this year.
Comments
Research Reports
Projects
Latest News
Showroom
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
