Kenya, Sudan ink agreement on oil information exchange

Mar 15, 2006 (NAIROBI) — Kenya’s Energy Minister Henry Obwacho says the government has already signed a memorandum of understanding with Sudan that will enable the two countries share information on oil exploration.

The new move may also fast-track the building of an oil pipeline between Lamu and Kapoeta Port in the Sudan, the Kenya Broadcasting Corporation (KBC) reported .

With the end of the civil war in Southern Sudan, countries across borders are now entering into bilateral agreements with Sudan to promote trade.

Kenya is among countries that now want to tap the oil resources in southern Sudan with the possible establishment of a Port in Lamu, through which oil from Sudan can be shipped to other countries.

The country’s refinery in Mombasa does not have the capacity to refine oil from Southern Sudan unless it is upgraded.

Obwocha who was speaking at a Southern Sudanese investment forum however says proposals have been made to build a new oil refinery in Mombasa that will enable the country build up its capacity in processing oil products.

(KBC/ST)