Uganda’s President Yoweri Kaguta Museveni is today expected in Dar es Salaam, Tanzania to complete the signing of the East African Crude Oil Pipeline agreement.
The signing ceremony will take place today as Tanzania appends signature on the Host Government Agreement for the East Africa crude oil pipeline to complete a set of crucial legal documents for the project to proceed.
This comes after the 30 days that Tanzania requested for before it declares how much shareholding it will take in the East African crude oil pipeline which expired on Tuesday 18th May 2021.
Last month, Uganda and Tanzania, together with two oil companies; China’s CNOOC and Total E&P signed a number of agreements.
The two East African countries in partnership with the oil companies signed the Tariff and Transportation Agreement (TTA) between the pipeline company and the shippers of the crude oil through the pipeline.
The two governments and oil firms also signed the Host Government Agreement for the Republic of Uganda and the shareholding Agreement (SHA) for shareholders to the EACOP Company.
Ugandan enterprises urged to explore regional oil and gas opportunitiesShareholders in the East African Oil Pipeline (EACOP) include the Uganda National Oil Company (UNOC) on behalf of the Ugandan government, the Tanzania Petroleum Development Corporation (TPDC), Total E&P, and CNOOC.
Total E&P – a French company owns the majority stake of 72% in the pipeline, Uganda has 15% whereas CNOOC has 8% and Tanzania owns 5%.
It will cover 296km in Uganda passing through Hoima, Kyankwanzi, Mubende, Gomba, Kyotera, Lwengo, Ssembabule, Rakai, and Kikuube and 1443km in Tanzania through the regions of Kagera, Gieta, Shinyanga, Tabora, Singida, Dodoma, Manyara, and Tanga.
The 1,445-kilometer-long East African Crude Oil Pipeline draws crude oil from wells in western Uganda in Hoima district to Tanzania’s seaport of Tanga.
