According to our sources in Kampala, Giuseppe Ciccarelli, a former chief executive of SNAM (an ENI affiliate that imports LNG) and current boss of Medea Development, is advising Uganda on a project to export its future oil output.
Ciccarelli unveiled his pipeline plan on Oct. 19 to the oil ministers of Congo-K and Uganda, Celestin Mbuyu Kabango and Hillary Onek, as well as to Kenya’s ambassador to Kampala, Geoffrey Okanga. In the evening, Ugandan vice president Gilbert Bukenya and foreign minister Sam Kutesa joined the others to demonstrate their support for the project.
If Ciccarelli’s blueprint is adopted it would involve a project costing USD 3 billion. Under the scheme crude from Uganda and Congo-K would be stored at a tank farm in Hoima in eastern Uganda. That center would be linked to Mombasa on Kenya’s coast by a 1,500 km pipeline. The project also provides for the construction of three pumping and heating stations along the pipeline’s route (as the crude is heavy it must be warmed to become sufficiently fluid).
Ciccarelli has cultivated relations with Ugandan ministers for some time. In 2009, he negotiated with the government on ENI’s behalf to buy Heritage Oil’s stake on blocks 1 and 3A, but the two blocks went instead to Tullow Oil.
In addition to his work in Uganda, Ciccarelli is also an adviser to Caprikat and Foxwhelp. The two companies were awarded blocks 1 and 2 on Congo-K’s side of Lake Albert by presidential decree in June.
The project for a pipeline to export oil from Lake Albert is being headed up by Medea Development, a firm which also advises Caprikat and Foxwhelp in Congo-K.
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