Dar es Salaam | THE INDEPENDENT | President Yoweri Museveni is in Tanzania to sign an implementation agreement for the East African Crude Oil Pipeline.
He joined Tanzania President John Magufuli at Chato, northern Tanzania, today to witness the signing of a host and implementation agreement.
The 1,445KM Pipeline will transport crude oil from Uganda’s oil fields in Hoima, to the Port of Tanga on the Indian Ocean.
It is the first meeting between two East African leaders since the COVID-19 pandemic started. President wore a mask, while Magufuli was mask-less.
The signing comes two days after the Uganda government and the French oil giant Total E&P reached a major milestone that paved the way for a Final Investment Decision on the production of Uganda’s oil.
This followed a meeting between President Museveni and Patrick Pouyanné, Chairman and CEO of Total. The meeting was held at State House, Entebbe.
The two agreed on the conditions of how the Uganda National Oil Company (UNOC) will join and participate in the East African Pipeline project, as well as on the Host Government Agreement which will govern the export pipeline in Uganda. The project is expected to cost the consortium USD 3.5 billion with construction expected to start early next year.
The Host Government Agreement aims to ensure that both countries fully benefit from the project in regards to the transportation of the crude to the international market.
“We have today reached major milestones which pave the way to the Final Investment Decision in the coming months. We now look forward to concluding a similar agreement with the Government of Tanzania and to completing the tendering process for all major engineering, procurement and construction contracts,” said Pierre Jessua, Managing Director of Total E&P Uganda.
He said, the conditions are set for the ramp-up of project activities and in particular, the land acquisition activities in Uganda.Total E&P committed to respecting the highest human-rights standards while carrying out these activities. The company reiterated its willingness to pursue a constructive dialogue with the communities and NGOs regarding all project activities.
“I am glad that Total and other companies licenced in the country are taking bold steps to quickly commence the production of petroleum, President Yoweri Museveni said after the event, adding that the delay was deliberate to avoid some mistakes in the processes. Museveni reiterated that Uganda’s proceeds will be used to develop infrastructure and ICT.
Total E&P Uganda is leading the development activities towards production in the Tilenga project area – Exploration Area1 (EA-1) and Exploration Area2 North(EA-2N) within the Albertine Region.
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