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Article

16 Oct 2013

Author:
David Arnold, Voice of America

East Africa Oil Discoveries Breed Challenges

Significant oil reserves have been discovered in Uganda and Kenya in recent years. However before Kenyans and Ugandans can benefit from the discoveries infrastructure challenges, political issues and special interests must be overcome say experts...Tullow’s success has attracted major producers from around the world, including France’s Total, China National Offshore Oil Corporation (NCOOC), Exxon and Chevron...[T]he arrival of the international oil and gas industry offers hope for a better life for millions...Extracting oil in East Africa offers the potential for development, said Mwangi Kimenyi, director of the Brookings Institution’s Africa Growth Initiative (AGI), “but there is likelihood that this might not turn out to be so and may instead be a curse...Unfortunately, the capacity to negotiate contracts is still mired in secrecy and underhanded dealings...My take is that contracting is still not open and there is still a great deal of ‘conspiracy’ between foreign firms and the local leaders.” [also refers to Statoil]