Business News

Museveni off to Tanzania to finalise oil pipeline deal

President Museveni is any time from now expected in the Tanzanian capital, Dar es Salaam to finalise the signing of the East African Crude Oil Pipeline agreement.

The signing ceremony will happen tomorrow as Tanzania appends signature on the Host Government Agreement for the East Africa crude oil pipeline tomorrow to complete a set of crucial legal docs for the project to proceed.

This comes after the 30 days that Tanzania requested for, before it declares how much shareholding it will take in the East African crude oil pipeline elapsed yesterday.

In April, Uganda and Tanzania, together with two oil companies including Total E&P, and China’s CNOOC.

The two countries together with the oil companies signed the Tariff and Transportation Agreement (TTA) between the pipeline company and the shippers of the crude oil through the pipeline.

The two governments and oil firms also signed the Host Government Agreement for the Republic of Uganda and the shareholding Agreement (SHA) for shareholders to the EACOP Company.

Shareholders in the East African Oil Pipeline(EACOP) include the Uganda National Oil Company (UNOC)on behalf of the Ugandan government, the Tanzania Petroleum Development Corporation (TPDC), Total E&P, and CNOOC.

With French company French Total E&P owning a majority stake of 72% in the pipeline, Uganda has 15% whereas CNOOC has 8% and Tanzania has 5%.

The 1,445-kilometer-long East African Crude Oil Pipeline draws crude oil from wells in western Uganda in Hoima district to Tanzania’s seaport of Tanga.

It will cover 296km in Uganda passing through Hoima, Kyankwanzi, Mubende, Gomba, Kyotera, Lwengo, Ssembabule, Rakai, and Kikuube and 1443km in Tanzania through the regions of Kagera, Gieta, Shinyanga, Tabora, Singida, Dodoma, Manyara, and Tanga.

ADVERTISMENT

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button