The newly appointed, first female president of Tanzania, Samia Hassan Suluhu, and President Yoweri Museveni signed a pipeline deal to expand oil production on Sunday evening.
President Yoweri Museveni on Sunday evening together with Tanzania’s newly appointed and first female president Samia Hassan Suluhu signed a pipeline deal to expand oil production.
The deal was signed in the company of the two oil companies of Total E&P, and China’s CNOOC. Among others, the deals signed included the Tariff and Transportation Agreement (TTA) between the pipeline company and the shippers of the crude oil through the pipeline.
Also signed were the Host Government Agreement for the Republic of Uganda and the shareholding Agreement (SHA) for shareholders to the EACOP Company.
Shareholders in the East African Oil Pipeline (EACOP) including the Uganda National Oil Company (UNOC) on behalf of the Ugandan government, the Tanzania Petroleum Development Corporation (TPDC), Total E&P, and CNOOC.
Under this, the French company French Total E&P owns a majority shares of 72% in the pipeline, Uganda owns 15% whereas CNOOC owns 8% and Tanzania owns 5%.
In a signing ceremony held at the State House in Entebbe, President Museveni said the pipeline will help spark further developments in the region not only in the short run but also in the long run.
Museveni revealed that the pipeline can carry up to 230,000 barrels per day. He said it can also make a return gas pipeline, supplying Tanzanian and Mozambique gas to Uganda and the Great Lakes region.
“This pipeline could turn out to be a very important project that may serve the region, not only in the short term but also in the medium, if not in the long-term,” Museveni said.
“This project should, in addition to what we have said, serve to awaken all Africans that prosperity and strategic security, are only possible if we use the Pan-Africanist approach that gives us a bigger market and rationalizes economic linkages.”
However, Tanzania’s Suluhu said that once completed, the East African crude oil pipeline from Hoima (Uganda) to Tanga (Tanzania) will help boost job opportunities in addition to sparking future developments and advancements in all countries involved.
“Once completed, the East African crude oil pipeline from Hoima (Uganda) to Tanga (Tanzania) will be the longest heated pipeline in the world. More than 10, 000 job opportunities will be created during execution,” President Suluhu said.
