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Tanzania and Uganda signed an agreement on Sunday paving the way for the construction of a crude oil pipeline that runs from Uganda’s oil fields to the Tanzanian port of Tanga, a Tanzanian government spokesman said.
Uganda discovered oil reserves in 2006 and needs the 1,445 km East Africa crude pipeline to be established to start commercial production. The gas pipeline is estimated to cost $ 3.5 billion (R58.5 billion), according to the two governments.
Hassan Abassi, a spokesman for the Tanzanian government, said on Twitter that 80% of the pipeline will pass through Tanzania.
Tanzania will earn 7.5 trillion shillings (R1.1 trillion) and create more than 18,000 jobs over the next 25 years or more that the project is underway, Abassi said after the signing ceremony attended by the Tanzanian president. , John Magufuli, and the President of Uganda, Yoweri. Museveni in Chato, northwestern Tanzania.
Uganda has not given a date on when construction of the gas pipeline will begin, but said last year that once construction begins, it would take between two and a half to three years to complete.
The agreement on the construction of the pipeline comes days after French oil company Total said it had reached an agreement with Uganda to protect its rights and obligations in the construction and operation of the pipeline, known as the host government agreement.
Total is the largest shareholder in the Uganda oil fields after agreeing in April to buy Tullow Oil’s total stake in the fields on jointly owned land in Uganda for $ 575 million (about R9.6 billion).
Tullow said last week that it was confident of finalizing the sale in the fourth quarter of this year.
The other partner in the 230,000 barrels per day project is China’s CNOOC. ($ 1 = 2,315,0000 Tanzanian shillings)
Reuters
