Kenya and Uganda ended months of debate in August to sign an agreement on an oil pipeline costing almost $4 billion. Finding the money to build it and companies to start pumping crude could be a tougher task, however. The 1,500 kilometer (930 mile) pipeline is key for exporting the region's crude when production finally begins-2018 in Uganda's case. With oil prices languishing below $50 a barrel as of Sept. 16, there is little incentive for companies such as Africa Oil Corp., China's CNOOC Ltd., France's Total S.A. and Tullow Oil Plc to continue investing. "The lower oil price has created a great deal more uncertainty around future oil production, given that additional capital expenditure will be required to make oil production a reality," Razia Khan, head of Africa economic research at Standard Chartered Plc in London, said in an e-mailed response to questions.
展开▼
