Kuwait holds talks with Djibouti and Ethiopia on oil pipeline

The Independent Petroleum Group of Kuwait (IPG) has been holding talks with the Ethiopian and Djiboutian authorities about building an oil pipeline between the two countries' capitals, the Kuwaiti ambassador in Addis Ababa said.
"This pipeline is strategically important for both countries", Kuwait's ambassador to Addis Ababa, Abdulaziz Al-Duaij.

The pipeline would be 800 km (500 miles) long, cost $ 300 mm to construct and be one of the largest investments in sub-Saharan Africa. IPG has also expressed an interest in prospecting for oil in Ethiopia.
For Ethiopia, whose international trade passes almost entirely through the port of Djibouti, the pipeline project would drastically reduce the cost of importing fuel, which is currently brought into the country by road.

Djibouti is shortly expected to begin building a huge oil terminal at Dorelah, near the port, and several Gulf companies are expected to set up shop there. IPG officials held an initial round of meetings with Ethiopia and Djibouti late last year.
"Discussions are under way but appeals must be made to get funding," the ambassador said. Appeals are expected to be made to international, African and Arab financial institutions.