Uganda and Tanzania sign crude oil pipeline deal

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Uganda and Tanzania have signed an agreement to fast track the implementation of the crude oil pipeline. The agreement brings both countries closer towards the commercialization of the estimated 6.5 billion barrels of crude oil resources in Western Uganda.

Uganda’s minister of energy, Irene Muloni, says they want to fast-track the process to meet the deadline of 2020 when the first drop of oil is expected.

“Now that we have laid the foundation, we need to make sure that things move and really move faster so that we are able to achieve the timeline of first oil 2020,” Irene Muloni, Ugandan Minister of Energy and Mineral Development, told CGTN Africa.

Tanzania’s minister of constitutional and legal affairs, John Kabudi Palamagamba said the project will boost the economies of both countries.

“The signing of the inter-governmental agreement between Uganda and Tanzania is significant in the sense that the construction of the pipeline is going to create jobs. Secondly it is going to sustain livelihoods of people throughout the route where it will pass.”

French oil firm Total E&P are the lead partners in the crude oil export pipeline. The pipeline is estimated to cost almost $4 billion and will be 24 inches in diameter and cover a distance of over 1400 kilometres from Uganda’s western district of Hoima to the Tanga Port in Tanzania.

When completed, it will be longest heated pipeline in the world.The new agreement now awaits ratification from the parliaments of both Uganda and Tanzania to be legally binding.

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