Tanzania President and President Museveni sign Crude Oil Pipeline Agreement
Tanzania President Samia Suluhu and President Museveni have witnessed the two countries’ signing of the agreement on implementation of the tripartite East African Crude Oil Pipeline (EACOP) from Hoima in Uganda to Tanga port in Tanzania.
The agreement, signed in the Ugandan capital Kampala yesterday, paves the way for the construction of a 1,440 km crude oil pipeline from Uganda’s Albertine region to the Tanzanian seaport of Tanga.
Extraction will take place at two oil fields: The Kingfisher field, which is operated by China National Offshore Oil Corporation Ltd, and the Tilenga field, operated by Total S.A.
Speaking after the signing of the agreement that is over $10billion, President Yoweri Kaguta Museveni, said that he chose to work with Tanzania because of its historical contribution towards Uganda.
“I originally preferred an oil refinery only because of the high demand in the East African region that imports a lot to serve their markets. The oil companies were biased for crude oil exports and a pipeline. The compromise was we have both,” he said.
For her part, Samia Hassan Suluhu, the President of the United Republic of Tanzania who assumed the presidency last month after the death of John Pombe Magufulu, the pipeline will go a long way in cementing the relationship that her country has with Uganda.
Uganda last month suspended the signing of the agreement to mourn the death of then Tanzanian President John Pombe Magufuli.
The $3.55 billion pipelines could be the longest electrically heated crude oil pipeline in the world. Once completed, more than 10,000 job opportunities will be created during execution, according to Suluhu.