Accessibility links

Breaking News

Uganda and Tanzania Officials Ready for Oil Investments

FILE - Uganda's President Yoweri Museveni poses with King of Bunyoro, Solomon Iguru the first (L) and Minister of foreign Affairs of Tanzania Dr. Augustine Mahiga (R) during the ceremony marking the laying of the foundation stone for the starting point of

Officials from Uganda and Tanzania are celebrating a newly-signed agreement that will pave the way for commercial oil production in Uganda by 2025.

The 1,400km East African Crude Oil pipeline is expected to be completed in 36 months. It will run from Hoima district in Uganda through to Tanga port in Tanzania.

Oil giants, China National Offshore Oil Corporation and France-based Total Energies have pledged $10 million dollars towards infrastructure to kick start the project.

“This is a step towards unlocking more opportunities for investment and development in Uganda and the whole region,” says CNOOC president, Chen Zhuobia.

Along with the pipeline, other projects included in the agreement are in the two oil fields of Tirenga and Kingfisher in Uganda’s Albertine region

Zhuobia says “The Kingfisher project is expected to fetch an in-country value of $1.6 Billion dollars and $400 million dollars’ worth of local service providers.”

Chief Executive Officer of Total Energies, Patrick Pouyanne echoes Zhuobia’s excitement, adding his company has started the groundwork.

“Tangible progress has already been made on the ground with some land acquisitions and already some civil works are starting on the site and some engineering and procurement has been kicked off locally and around the world,” says Pouyanne.

Tanzania’s Vice President, Phillip Mpango who witnessed the signing of the oil deal in Kampala alongside Uganda’s Yoweri Museveni says he is excited to witness the impact it will have on the local economy.

"Two countries are projected to realize a record level of foreign direct investment flows to the tune of $3.5 Billion dollars over the period of 2022 to 2025, which is an increase of 60 percent,” says Mpango.

Mpango adds, “The pipeline will also provide business opportunities in various sectors, including construction, energy which will eventually create a trickle-down effect and thus contributing to local development.”

Uganda’s President Yoweri Museveni echoes Mpango’s sentiments adding that the pipeline will create an avenue for oil exploration in other East African countries.

“This same oil here is also in Eastern Congo the same Albert valley. There is petroleum in South Sudan. I think out Tanzanian brothers are also looking for petroleum in Lake Eyasi area,” says Museveni.

“So, this East African Crude Oil Pipeline may end up being a nucleus for the East African crude oil effort - not just for oil in Uganda,” Museveni added.