Foreign Affairs Cabinet Minister Amina clarifies erroneous report on Kenya-Ethiopia oil deal.

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President Uhuru Kenyatta (right) and Ethiopia's Prime Minister Hailemariam Desalegn at State House in Nairobi on June 23, 2016. Photo/PSCU

Days after the Ethiopian Ministry of Mines, Petroleum and Natural Gas denied a recent state house report which claimed that Ethiopia and Kenya had signed oil pipeline deal.

Foreign Affairs Cabinet Secretary Amina Mohamed has moved fast to clear the air arguing that Kenya and Ethiopia signed Memoranda of Understanding in five key areas of cooperation among them Cooperation in the Oil and Gas Sector.

The MoU, she argued, is a document of intent signaling that discussions have started between the parties concerned.

An Ethiopian government high-level delegation led by Prime Minister Hailemariam Dessalegn visited Kenya at the end of June and signed various bilateral cooperation agreements in areas of energy, animal health, education and sport.
A joint ministerial meeting was also held in Nairobi, Kenya.

The Kenyan government through state house reported that an oil pipeline construction agreement was signed by Prime Minister Hailemariam and the President Uhuru Kenyatta.

According to the report send to media houses, the proposed pipeline would run all the way from Lamu to Addis Ababa.

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However, the Ethiopian Minister of Mines, Petroleum and Natural Gas has completely denied the truth of the report.
“We did not sign pipeline construction deal. This is utterly an erroneous report,” Tolossa Shagi told a local newspaper The Reporter.

“A proposal was presented to us but this is not something that we jump into abruptly. We need to evaluate the technical and economic feasibility. Our legal experts have to assess the proposal,” Tolosaa said.

The minister said Ethiopia agreed to evaluate the proposal thoroughly and may sign the deal by the end of 2016 if the proposal is economically and technically sound.

Source; The Exchange.

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