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Uganda, Tanzania Sign Agreement To Start The Construction Of The $10Bn Oil Pipeline Project.

Written by on April 11, 2021

The government of Uganda and its Tanzanian counterpart have today signed the East African Crude Oil Pipeline agreement that effectively signals the start of the construction of the pipeline that will transport Uganda’s oil from Hoima to the port of Tanga.

Among the agreements signed today between the officials from the government of Uganda and Tanzania and the oil companies’ CNOOC and Total are; Host Government agreement and the Tariff and Transportation agreement.

Speaking after the signing of the agreement that is over $10billion, President Yoweri Kaguta Museveni, said that he chose to work with Tanzania because of its historical contribution towards Uganda.

Museveni said Tanzania helped Uganda to sort out the political mess that had been created by past leaders.

On why he chose April 11 as the new date to sign the agreement, Museveni said it was the same day in 1979 when the Tanzanian army launched the assault on Kampala and deposed President Idi Amin.

For her part, Samia Hassan Suluhu, the president of United Republic Of  Tanzania who assumed the presidency last month after the death of John Pombe Magufulu, the pipeline will go a long away in cementing the relationship that her country has with Uganda.

She said in the region grappling with unemployment, the pipeline will create a number of jobs especially for the young people.

Suluhu also thanked Uganda for agreeing to postpone the signing of the agreement from the original date of March 22 to today in honor of Magufuli who she talked about as having been very enthusiastic about the project.

“This kind of gesture portrays a true definition of partnership. Postponing this event was the honor of his commitment…,” Suluhu said.

The Chairman and Chief Executive Officer of Fran Oil Giant Total , Patrick Pouyanne,  thanked President Museveni for his unwavering commitment to the oil project.

He said signing the agreement is a historical milestone in the journey of the oil industry not only for Uganda and Tanzania and for the whole of the East African region.

“It’s a very large project one of the largest to be developed on this content. It’s more than $10billion dollars. It hasn’t been possible without your commitment. This is the beginning of the journey that will take four years for the oil to start flowing from Uganda to Tanzania,” Pouyanne said.

The construction of the pipeline is expected to take four years for the oil to start flowing. If complete, it will be the longest heated crude oil pipeline line in the world.

On 13th September 2020, Tanzania and Uganda signed an agreement allowing for the construction of a 1,445 km (898 miles) crude oil pipeline, $3.5bn (£2.7m) project will connect Uganda’s oil fields to Tanzania’s port of Tanga.


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