Posted September 13, 2020 9:28 pm by

NAIROBI, Kenya, Sep 13 – Presidents Yoweri Museveni and Pombe Magufuli signed a pact to commission a 1,445-km East African Crude Oil Pipeline (EACOP) running from Hoima in Uganda to the port city of Tanga in Tanzania.

Speaking when he hosted President Museveni in Chato District, northwestern Tanzania, President Magufuli said the project will see that Tanzania makes more than USD 3.24 billion and see the creation of over 18,000 jobs.

“Under this project Tanzania will have 1145km which will see the creation of more than 18,000 jobs while Uganda will utilize the rest,” said Magufuli.

Uganda discovered oil reserves in 2006 and requires EACOP to be in place to start commercial production.

The pipeline is estimated to cost USD3.5 billion with both countries expecting its completion within three years from the date of commissioning.

The announcement by the two states comes after Uganda and Total signed a host government agreement to protect its rights and obligations in the construiction and operation of the pipeline.

“I am glad that Total and other companies licensed in the country are taking bold steps to quickly commence the production of petroleum,” President Museveni said on September 12.

Total is the major shareholder in Uganda’s oilfields.

Uganda and Tanzania agreed on a 40:60 profit sharing formula, a consensus realized on the basis of 70 per cent of the pipeline running through Tanzania’s territory.

Speaking when he hosted President Museveni in Chato District, northwestern Tanzania, President Magufuli said the project will see that Tanzania makes more than USD 3.24 billion and see the creation of over 18,000 jobs.

“Under this project Tanzania will have 1145km which will see the creation of more than 18,000 jobs while Uganda will utilize the rest,” said Magufuli.

Uganda discovered oil reserves in 2006 and requires EACOP to be in place to start commercial production.

The pipeline is estimated to cost USD3.5 billion with both countries expecting its completion within three years from the date of commissioning.

The announcement by the two states comes after Uganda and Total signed a host government agreement to protect its rights and obligations in the construiction and operation of the pipeline.

“I am glad that Total and other companies licensed in the country are taking bold steps to quickly commence the production of petroleum,” President Museveni said on September 12.

Total is the major shareholder in Uganda’s oilfields.

Uganda and Tanzania agreed on a 40:60 profit sharing formula, a consensus realized on the basis of 70 per cent of the Read More…Museveni, Magufuli sign pact to commission 1,445-km East African Crude Oil Pipeline  Museveni, Magufuli sign pact to commission 1,445-km East African Crude Oil Pipeline  Museveni, Magufuli sign pact to commission 1,445-km East African Crude Oil Pipeline  Museveni, Magufuli sign pact to commission 1,445-km East African Crude Oil Pipeline