Uganda, Tanzania renegotiate oil pipeline agreement


Uganda’s president Yoweri Museveni has put his signature to an agreement that should kick off the practical construction of the pipeline.
Museveni closed the deal with his Tanzanian counterpart John Magufuli at the weekend.
The agreement followed a series of prior bilateral negotiations.
The two leaders finally agreed on value added tax and the modalities for implementation said a statement from the State House.
Said to be one of the world’s longest heated crude oil pipelines, constructing the 1400km line is expected to cost about four billion US dollars.
Uganda chose Tanzania, despite earlier negotiations with Kenya as a viable alternative route for the pipeline that should run to the coast.
Uganda’s oil reserves now stands at an estimated 6.5 billion barrels and production licenses have been to foreign oil companies.