Uganda and Tanzania have signed a contract to build the first major oil pipeline in East Africa. It comes just two days after Kampala signed a host government agreement with French oil giant Total. NAIROBI (Reuters) – Tanzania and Uganda signed an agreement on Sunday paving the way for the construction of a crude oil pipeline from Ugandan oil fields to the Tanzanian port of Tanga, a Tanzanian government spokesman said. Uganda approved the environmental permit for the $3.5 billion oil pipeline project, which was found in Uganda in 2006, but production was partly delayed by a lack of infrastructure, including an export pipeline. Read also: Tullow Oil sell stake in East Africa`s crude oil pipeline system Uganda has not given a date for the construction of the pipeline, but said last year that, once construction begins, it would take 2-1/2 to three years to be completed. About 80% of the pipeline will pass through Tanzania. This means that the project is expected to create thousands of jobs in Tanzania, and probably a good reason to sign a similar agreement with Total. President Magufuli added that the country would use Uganda`s experience to search for oil in several of its regions. “If we beat oil, we will simply link these areas to the East African crude oil pipeline,” Magufuli said at the signing ceremony with his Ugandan counterpart on Sunday. Ugandan President Yoweri Museveni and his Tanzanian counterpart John Magufuli signed an agreement on 13 September in which the two countries will build a 1.445 km crude oil pipeline worth $3.5 billion. Has the EPM been appointed? Have contractors yet been identified for the construction of the pipeline? If not, when are the people mentioned above expected? Tanzania signed the Environmental Impact Assessment (EIA) last February. In September, Tanzanian President John Magufuli met with his Ugandan counterpart, Yoweri Museveni.
At that meeting, they both agreed to move the HGA forward. Tanzania will gain 7.5 trillion shillings ($3.24 billion) and create more than 18,000 jobs over the next 25 years, or even more than the project is in place, Abassi said after the signing ceremony attended by Tanzanian President John Magufuli and Ugandan President Yoweri Museveni in Chato, northwestern Tanzania. A statement from Total E-P said the October 26 agreement was “another successful step in this process after the implementation of the Ugandan HGA on September 11. Oil fields and the Lake Albert export pipeline are expected to result in a 60% increase in foreign direct investment in both countries during the construction phase. The East African Crude Oil Pipeline (EACOP) has signed a host government (HGA) agreement with Tanzania, as plans for the development of Ugandan oil near the finish line. Sunday`s ceremony comes days after Total, the majority shareholder in Uganda`s oil fields, said it had reached an agreement on the pipeline with the Ugandan government. About 80 percent of the pipeline will pass through Tanzania, and the project is expected to create more than 18,000 jobs for Tanzanians, according to Reuters news agency, government spokesman Hassan Abassi reported.