TWO FIRMS LEAD RACE FOR UGANDA-TANZANIA PIPELINE DEAL

Tanzanian President John Magufuli (left) and Ugandan President Yoweri Kaguta Museveni at the project board for the construction of the East Africa Crude Oil Pipeline in Mutukula, Uganda, on November 9, 2017.

Australia-based WorleyParsons and London-based Penspen are said to be the lead contenders to win the contract for the construction of the Uganda-Tanzania pipeline that will start in Hoima and terminate at the sea port of Tanga in northern Tanzania.

A source with knowledge of the matter told The EastAfrican that the two firms are likely to be appointed the engineering, procurement and construction management services contractors for the joint pipeline.

“These two are the lead contenders out of the six firms that the technical team from the two countries and the development partners are reviewing. A decision will be made in November,” the source said.

Last week, Uganda’s Energy Permanent Secretary Robert Kasande said that agreements with Tullow Oil, Total and China National Offshore Oil Corporation, who are jointly developing Uganda’s oil, could be signed in the next three months.

Tullow said in its half-year update last week that the Ugandan deal is expected in coming months as the upstream and pipeline front end engineering design (FEED) and upstream environmental and social impact assessment have been completed, and now await the award of the engineering, procurement and construction (EPC) contracts.

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