Uganda, Tanzania sign agreement for construction of crude oil pipeline

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Uganda, Tanzania sign agreement for construction of crude oil pipeline

4:26 CAT | 13 Sep 2020

Photo: Twitter / @habarikwanzatz

Tanzania and Uganda signed an agreement on Sunday paving the way for the construction of a crude oil pipeline running from Ugandan oilfields to the Tanzanian port of Tanga, a Tanzanian government spokesman said.

Uganda discovered oil reserves in 2006 and needs the planned 1,445-km (900-mile) East African Crude Oil Pipeline to be in place to start commercial production. The pipeline is estimated to cost $3.5 billion, according to the two governments.

Hassan Abassi, Tanzania government spokesman, said on Twitter that 80% of the pipeline will run through Tanzania.

Tanzania will earn 7.5 trillion shillings ($3.24 billion) and create more than 18,000 jobs over the next 25 years, or more, that the project is in place, Abassi said after the signing ceremony attended by Tanzania’s President John Magufuli and Ugandan President Yoweri Museveni in Chato, northwestern Tanzania.

Uganda has not given a date for when construction of the pipeline will begin but said last year that once construction begins, it would take 2-1/2 to three years to complete.

The agreement on the pipeline construction comes days after French oil company Total said it had reached an agreement with Uganda protecting its rights and obligations in the pipeline’s construction and operation – known as the host government agreement.

Total is the major shareholder in Uganda’s oilfields after agreeing in April to buy Tullow Oil’s entire stake in the jointly held onshore fields in Uganda for $575 million.

Tullow said last week it was confident of finalising the sale in the fourth quarter of this year.

The other partner in the 230,000 barrel-per-day project is China’s CNOOC.

“…Museveni called yesterday and informed me that he wanted to come to Tanzania wearing a facemask. I told him why not, you can carry even a blanket if you can,”~ President Magufuli

#AuntyWaHarrier pic.twitter.com/viL5EGuDp7

— Leonard ‘Kakaloo’ K’Onyango (@LeonardKonyango) September 13, 2020

Rais wab JMT Dkt. John Pombe Magufuli akiwa na Rais wa Jamhuri ya Uganda Mhe. Yoweri Kaguta Museveni wakiwa eneo la uwanja wa Ndege wa Chato. Mkoa wa Geita wakitia saini mkataba wa mwisho wa utekelezaji wa ujenzi wa Bomba lakusafirishia mafuta Kutoka Uganda mpaka Tanzania leo . pic.twitter.com/6WGteWv1aR

— Habari Kwanza (@habarikwanzatz) September 13, 2020

Rais Uganda Mhe. Yoweri Museveni alipowasili katika uwanja wa ndege wa Chato kwa ziara ya kikazi ya siku 1 nchini. Yeye na Mhe. Rais Magufuli wametia saini waraka wa pamoja unaoagiza kuanza haraka ujenzi wa mradi wa bomba la mafuta kutoka Hoima (Uganda) hadi Tanga (Tanzania). pic.twitter.com/SMueFF6GEM

— Koncept TV (@koncept_tv) September 13, 2020

Rais wa Tanzania Dkt John Pombe Joseph Magufuli na Rais wa Jamhuri ya Uganda Mhe Yoweri Museveni wakitia saizi ya waraka wa kuanza mapema kwa ujenzi wa Bomba la Mafuta kutoka Uganda hadi Tanga Tanzania. pic.twitter.com/1w2WqspwBX

— Haruna-Rashid (@HarunaR33826364) September 13, 2020

Source: Reuters