Uganda’s energy officials have signed a new agreement with Tanzania to explore a southern route for its pipeline after announcing an agreement with Kenya in August for the pipeline route.
Uganda is exploring its options to get value for its crude oil by getting the least costly transportation route according to Uganda’s Permanent Secretary for the Energy Ministry, Mr.Kagambe Kaliiza.
Economic experts say the oil production likely to be pushed to 2018 because of the latest deal.
French Oil Company, Total, had earlier proposed for the crude oil pipeline to pass through Tanzania but was rejected by both Uganda and Kenya.
Uganda is looking to secure the pipeline; with Kenya sharing the border with Somalia which hosts the militants is not a safe option.
Uganda has said that it is holding talks with East African States on developing a refinery that will have an initial capacity of holding 30,000 barrels per day.
