Final Oil Pipeline Agreement signed

Final Oil Pipeline Agreement signed

The Tanzanian government has sealed its part of the host government agreement for the East African Crude Oil Pipeline (EACOP).

The agreement is urged between a foreign investor and a local or host government, stipulating the rights and obligations of both the investor and the host government.

The deal signed between Tanzania and EACOP company represented by Total, was the remaining key agreement to undertake the crude oil pipeline project.

It should be noted that on April 12, three key agreements were signed at State House Entebbe-between Uganda and its joint venture partners for the pipeline.

However, the host government agreement between Tanzania and EACOP company was deferred to May.

The owners include the Government, Uganda National Oil Company (UNOC), Total and China National offshore Oil Corporation (CNOOC)

While addressing the stakeholders, President Museveni congratulated the government of Tanzania on undertaking the host government, and confirming their participation in the project.

President Museveni said both countries will benefit immensely from the pipeline project.

For sustainability of the pipeline, Museveni said, the current discoveries are not the only petroleum resource we may find.

He said, the 6.5 billion barrels of discovered oil resources account for only 40% of the area in the Albert zone, which he thinks still has oil.