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Hoima-Tanga oil pipeline deal done, agreement signed

Uganda’s Energy Minister Irene Muloni (left) and John Kabudi, Tanzania’s  Constitutional & legal Affairs minister sign the oil pipeline deal in Kampala. PHOTO VIA @yssempogo

Ugandan ministers have today signed the East African Crude Oil Pipeline Inter-Governmental Agreement (EACOPIGA) after leaders of the two nation’s agreed last week that  all is set for construction to start.

“This signing is landmark occasion after several months of negotiations,” said Ministry of Energy Permanent Secretary Stephen Isebalij, adding “the pipeline is critical in the commercialization of Uganda’s crude oil.”

“This indeed is a historical moment,” said TOTAL GM Adewale Fayemi.

Today’s signing in Kampala follows a pact between Presidents Yoweri Museveni and John Pombe Magufuli last weekend expressing intent to go ahead with the construction of the oil pipeline from Uganda to Tanzania.

The two leaders on Sunday signed a communique agreeing to start construction of the East African Crude Oil pipeline (EACOP) project that is 1,400km from Hoima in Uganda to Tanga Port in Tanzania.

The two countries have been negotiating how to proceed with the EACOP project after the East African nations agreed in April last year to the pipeline going through Tanzania and not Kenya as had been earlier planned.

Museveni went on to confirm that “we chose Tanzania because of its relative stability. We agreed to this pipeline as a way of getting to other markets.”

He said that Tanzania’s favourable land system and the fact that Tanga Port is protected from ocean waves influenced Uganda’s choice.

Construction cost estimates are set at $3.5 billion and the pipeline will transport 200,000 drums of oil per day. Of the 1,443km pipeline, 1,115 of it will pass through Tanzania.

Kenya will now construct a crude oil pipeline from Lokichar to Lamu Port on her own.

 

 

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