Tanzania: Dar and Kinshasa Begin Talks On Oil Pipeline Project

Posted on :Monday , 12th September 2016

The Democratic Republic of Congo has opened preliminary discussions with Tanzania over its crude oil prospects.

The talks are aimed at enabling Kinshasa to export its oil through the proposed pipeline system from Hoima in Uganda to the Tanga port in Tanzania.

The consultations began at the end of last month in Dar es Salaam between DRC's Ministry of Hydrocarbons and its Tanzanian counterpart, according to Oil of DRCongo, a subsidiary of a Dutch natural resources conglomerate that is exploring for oil in eastern DRC.

Giuseppe Cicarelli, the subsidiary's chief executive, said access to the least-cost option to get the crude into market is vital to the next round of investment the company is supposed to make.

This includes drilling two exploratory wells to physically establish results from 3D seismic surveys they conducted two years ago, and further investment for more 3D exploration works focused in the most complex structures identified.

"Oil of DRCongo is actively working to find viable solutions for the future evacuation of the crude oil from Block I & II to the Indian Ocean, which is key to the long term success of the project," Mr Cicarelli said in a statement.

"Those conversations are ongoing. Oil of DRCongo continues to progress its exploration work in Blocks I & II of Lake Albert, having already completed an extensive seismic campaign. It remains committed to investing in and progressing the project," the statement added.

In August 2014, the company announced analysis of seismic data that indicated around three billion barrels of oil in place in Blocks I and II on the Congolese side of Lake Albert.

If proven recoverable, the alternative for Oil of DRCongo is construction of a 6,500km-long pipeline running west to the Atlantic coastline.

Analysts have already noted such investment would only be feasible if massive oil reserves were discovered in the Central Basin as well.

The talks between Dar es Salaam and Kinshasa come on the back of a recent invitation by Uganda's President Yoweri Museveni to his Congolese counterpart Joseph Kabila to accelerate collaboration in the exploitation of oil resources in transboundary areas.

President Museveni reportedly asked President Kabila to join the Northern Corridor Integration Projects, in particular the crude oil pipeline. The invitation followed a deal President Museveni had already struck with Tanzania to build an export pipeline from Hoima to the port of Tanga.

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