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Significance
The news will be noted in East Africa, where Total’s acquisition of Maersk Oil in August adds Kenya’s onshore oil reserves to its regional portfolio. However, expectations that this could energise East African oil prospects may be premature, as logistical and political challenges to hydrocarbons development around the region remain considerable.
Impacts
Financing must still be found for the Hoima-Tanga export pipeline to carry Uganda’s crude to the Tanzanian coast.
Infrastructure development in Uganda may exacerbate tensions over land and over revenue-sharing between local and national governments.
Kenya will push its new partner to support its own infrastructure ambitions.
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2017
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