UGANDA - TANZANIA SIGN AGREEMENT FOR EAST AFRICA CRUDE OIL PIPELINE PROJECT

The governments of Uganda and Tanzania have signed the Host Government Agreement (HGA) towards the implementation of the East Africa Crude Oil Pipeline (EACOP) project. The pipeline will run from Uganda’s oilfields around Lake Albert to the port of Tanga in Tanzania’s northeast region. According to Hassan Abassi, Tanzania’s government spokesman, more than three-quarters of the pipeline will run through Tanzania.

Abassi also said that Tanzania will earn an estimated US$3.24bn and create more than 18,000 jobs over the next 25 years, or more, that the project will be in operation.
A deal between Uganda and Total on East Africa Crude Oil Pipeline

The signing of the agreement between the two East African countries comes a day after Uganda and French oil and gas multinational company Total struck a deal that established a Host Government Agreement governing the export pipeline project in the country and the conditions of entry of the Uganda National Oil Company in the project.

In a statement, Pierre Jessua, the managing director of Total E&P Uganda said that owing to the deal, they have reached a major milestone that paves the way to the Final Investment Decision in the coming months. “We now look forward to concluding a similar HGA with the Government of Tanzania and to completing the tendering process for all major engineering, procurement, and construction contracts,” he said.

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