Uganda and Tanzania sign the EACOP final investment decision

While speaking at the Final Investment Decision for Uganda’s oil and Gas project in Kampala on February 1st 2022, President Museveni applauded the work of former Tanzania President Mwalimu Julius Nyerere who worked a lot to support Africa through his sacrifice and it is in that context that he was happy for the pipeline project to go through Tanzania.

According to the President, the petroleum lately discovered in East African countries like Burundi, South Sudan and DRC will also benefit in this pipeline project hence becoming the nuclear of East Africa crude effort. Furthermore the president added that this project is important for this region as it will boost the economy through the 10billion dollars expected to be injected by Total energies and CNOOC in the coming years.

Following the accomplishment of the Host Government Agreements signed between government of Uganda and Tanzania for the East Africa Crude Oil Pipeline project in 2021, this decision is a great milestone in advancing the development of the oil and gas resource in Uganda and it brings a step closer to the 2025 goal of producing oil.

On behalf of Tanzania president, the Vice president Dr. Phillip Mpango said the two countries are bounded together and have a lot to share for bilateral benefits and this project will see the two countries projected to realize a record label of 3.5billion dollars through the period of 2022-2025 which is an increase of over 60% of their foreign direct flows.

Dr. Mpango added that the impact of this is will be evidenced through providing business opportunities, foreign exchange, attract investors and companies in our countries and also supporting our economic recovery that has been greatly affected by the pandemic.

‘’The government of Tanzania has taken deliberate action towards effective implementation of this project including the releasing of over 200billion shillings to the Tanzania Petroleum Development cooperation as part of equity participation’’ he emphasized

The Final Investment Decision is the point in the planning process for capital intensive projects when the decision to make major commitments is taken and it is at this point that major contracts are signed and equipment orders are placed and as far as this oil project 3 stages including Exploration, Development and Production should be undergone.

In this project that is expected to generate revenue of about 2billion dollars to Uganda two companies including Total Energies and CENOOC have spearheaded it expecting to exploit over 1 billion barrows of oil out of the 6.5billion barrows discovered in Lake Albert.

The occasion was graced by the Vice President of Uganda Hon. Jessica Alupo, foreign dignitaries, Total Energies CEO Patrick Pouyanne, Hon. January Makanga the Energy Minister of Tanzania, Hon. Ruth Nankabirwa Uganda’s Minister of Energy and Mineral development among others.