Total eyeing South Sudan-Uganda oil pipeline www.reuters.com Doha, 07/12/11 - French oil major Total said it could build a pipeline from South Sudan to Uganda that would continue to Kenya's coast, potentially solving the fledgling state's headache about how to export its oil. Total Christophe de Margerie said his company had proposed to Uganda that a pipeline that is planned to bring Ugandan oil to a Kenyan port be built so it could be extended to South Sudan. "The pipe, which is supposed to be from our potential blocks, because they are not yet our blocks in Uganda, could be, effectively, a hub for different sources of crude," de Margerie told a press conference at the sidelines of the World Petroleum Congress. "We say to Uganda as part of our long-term view you have to take into consideration what sort of oil can come from neighbour countries to make the pipe less expensive," he added. South Sudan has talked to companies about building a pipeline directly to Kenya, but analysts say it would be difficult for the country, which still suffers civil strife, to raise the funds required or overcome other logistical challenges. Connecting with the pipeline planned for Uganda to Kenya could significantly cut the total cost. Total has agreed to buy into oil blocks in Uganda where London-based Tullow Oil has discovered recoverable reserves of 1.1 billion barrels, and potentially as much as 2.5 billion barrels, and Total also owns a potentially oil rich licence in South Sudan. De Margerie said there was no timeline for construction of the pipeline. "It's just thoughts today," he said. He said Malaysia's PETRONAS and China's CNPC, which have currently operating in South Sudan, could also be interested in the project.
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