State minister of Energy (Minerals), Peter Lokeris said Uganda was in talks with South Sudan to build the oil pipeline from the Albertine to Juba (LAPSSET corridor) en route to Mombasa.
“It is in our best interest as a country and region and it will also help to fast track oil production here,” Mr Lokeris said last week.
“Negotiations between the two governments are ongoing and there is hope that they will yield something positive,” he added.
Oil giant Total E&P (SA) had pushed for a similar pipeline deal to Juba where it already operates as means of cutting costs to move crude oil to the Mombasa refinery.
Launched in 2012, the LAPSSET corridor project is one of East Africa’s major infrastructure projects that is expected to spur economic growth for the countries involved.
The project involves the construction of 6-km of berthing docks at Lamu, 1,720km of railway lines, 1,300km of oil pipelines, highways, airports and an oil refinery. It is expected to handle petroleum products from Kenya, Southern Sudan, Uganda and Ethiopia.