Crude oil prices rise to a $43 high on hopes for production freeze

Oil prices have jumped today based on the expectations that major oil producers will arrive at a productive agreement in the upcoming output freeze meeting on Sunday 17^th April 2016. Brent crude rose to a high of $43.58, the highest it has been this year, while WTI rose to $40.73.

In as much as production has begun falling within some regions in the US as a result of cutbacks on expenditure, the global oil market is still oversupplied. The U.S. Energy Information Administration said on Monday that production in the seven key shale-drilling regions would fall by 114,000 barrels a day in May compared with April.

Total remains firm on decision for Tanga Route amidst oil pipeline triangle between Kenya, Uganda and Tanzania

Total E&P Uganda has confirmed its commitment to construct the $4 billion crude oil pipeline through Tanga regardless of ongoing discussions between Kenya and Uganda to have it pass through the Kenyan route. The affirmation was made by Totals general manager Adewale Fayemi who said "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,” This was said at the two-day East Africa Oil and Gas conference in Tanzania.

Mr. Fayemi added that all available options have been carefully considered and the firm is more interested in the Tanga route, which it considered cheaper for oil production.

Tullow strikes positive prospects in Kerio Valley.

Source: Business Daily Africa

British firm Tullow posted in an operation update on Wednesday that the initial tests show a sign of positive prospects at the Cheptuket-1 well in Block 12A, in Rift Valley.

"The objective of the well was to establish a working petroleum system and test a structural closure in the south-western part of the basin," Tullow stated.

Fuel Prices for Major Towns in Kenya March 15th 2016 - April 14th 2016

Total VP meets with Tanzanian President Dr. John Maghufuli over crude oil pipeline

Mr. Javier Rielo, the vice president of Total assured Tanzania’s President Dr.John Maghufuli that the soon to be constructed pipeline from Uganda to Tanga will begin soon.

Mr. Rielo, who held talks with Dr. Maghufuli at the Dar es Salaam state house said on Monday 14^th March 2014 that Total had set aside funds for the 1410 kilometre pipeline which is expected to transport 200,000 barrels a day from Uganda’s Albertine basin to the port of Tanga. The project is estimated to cost $4 billion with a 3 year timeline, although Dr. Maghufuli requested that the timeline be reduced so that the region could benefit from the crude oil.

Construction of Uganda - Tanga Port Oil Pipeline to Commence in August 2016

The construction of the $4billion pipeline is slated to begin in August, pending ongoing discussions between Uganda and Tanzania and the investors. The pipeline is envisaged to transport crude oil from Kabale (Uganda) to Tanga Port (Tanzania).

Dr James Mataragio, the M.D of Tanzania Petroleum Development Corporation (TPDC) said in a recent statement that the 24-inch pipeline which will cover 1,403 kilometeres is expected to convey 200,000 barrels of crude oil per day. He added that "Tanzania has been chosen as a priority route due to a number of factors one of which is its experience in implementing gas and oil transportation projects through pipelines such as the 542-km Mtwara-Dar es Salaam gas channel."

Tanzania and Uganda agree to construct pipeline to Tanga

Source: Energy East Pipeline

Tanzanian leader President John Magufuli and Ugandan leader President Yoweri Museveni have agreed to construct a 1,120 km pipeline linking their countries and connecting the landlocked oil fields of Uganda to the Indian Ocean.  This was agreed after the recently concluded East Africa Community meeting held this week in Tanzania. The construction of the pipeline would create 15,000 jobs, and would cost around $4billion.