East African Crude Oil Pipeline deal makes headway in Tanzania.
French oil giant Total E&P yesterday signed a separate Host Government Agreement (HGA) for the proposed East African Crude Oil Pipeline (EACOP) with the Tanzanian government, bringing closer the fulfillment of the project.
Uganda signed its (HGA) with Total E&P in early September, paving way for the final Tanzanian version which was signed yesterday in Dodoma at a ceremony presided over by President John Pombe Magufuli & Total executives.
Two days after signing the Uganda HGA on September 13, President Museveni and Ugandan oil technocrats flew to Tanzania to provide assurances to the Tanzanian side and also signed a communique of endorsement ahead of the principles of the agreement.
The capital expenditure for developing the 1,445km pipeline, which stretches from Hoima in mid-western Uganda to Tanga Port in Tanzania, is $3.55b (shs13 trillion), 70 percent of which will be raised from international lenders.
Total E&P backed the Hoima–Tanga route as the least costly route for Uganda to transport its oil to the international markets on account of convenient constructability (flat terrain), highest availability(fully functional), lowest environmental footprint, and provided the shortest schedule for seeing first oil export.