Uganda, Tanzania agree on $3.55bn oil pipeline project

Uganda, Tanzania agree on $3.55bn oil pipeline project

The governments of Uganda and Tanzania have signed an agreement to build a $3.55bn crude oil pipeline, which will boost oil exports from landlocked Uganda.

The project will take three years to complete and create over 10,000 jobs, according to Irene Muloni, Uganda’s energy minister. The pipeline – which will be 1,445 km-long and 24-inches in diameter – will begin in Uganda’s western region, where crude reserves were discovered in 2006, and end at Tanzania’s Indian Ocean seaport of Tanga.

The pipeline, which will be heated to keep the thick oil liquid enough to flow easily, could be the world’s longest heated pipeline, according to Adewale Fayemi, manager at oil giant Total’s Ugandan subsidiary.

Uganda estimates overall crude reserves at 6.5bn barrels, while recoverable reserves could be between 1.4bn and 1.7bn barrels. French multinational oil and gas giant Total has joint ownership of Uganda’s oilfields, alongside China National Offshore Oil Corporation (CNOOC) and Britain’s Tullow Oil.

It is estimated that Uganda will pay a transit fee to Tanzania of $12.20 per barrel for pumping oil through the pipeline. Kenya had also bid for the pipeline to be built through its country, but Tanzania offered more favourable financial incentives.


Related Posts

  • Kenya’s budget woes

    In September, the Kenyan government passed the country’s biggest ever budget. The rise in taxes is leading to a squeeze that is provoking discontent among citizens and corporates …

  • Namibia moves towards land expropriation

    Land reform is a pressing issue in Namibia. President Hage Geingob has called for expropriation without compensation, a move that many landowners oppose. With the 2019 election drawing …

  • Ride-hailing apps takeover Lagos

    Ride-hailing apps are slowly taking over the motorcycle taxi market in Lagos, Nigeria.   Smallholder farmer Mohammed Abubakar knew he had few chances of earning a …

  • South Africa’s tourism sector aims high

    South Africa’s tourism industry has great untapped potential. The government’s tourist agency plans to boost visitor numbers by over 40% by 2021. Perched above Johannesburg’s tough inner …

Join our mailing list

If you would like Independent, Informative and Invaluable news analysis on the African continent, delivered straight to your inbox, join our mailing list.

Help us deliver better content