Uganda, Tanzania Ink Deal on $3.5 Billion Oil Pipeline Project

Uganda and Tanzania signed an agreement on Sunday, September 13, to commence construction on a 1,445-kilometer (900-mile) oil pipeline through East Africa.

The project focuses on pumping the crude from Uganda to the Tanzanian coast via a pipeline across Tanzania at an estimated cost of $3.5 billion.

The multinational plan is led by French petroleum giant Total in partnership with the China National Offshore Oil Corporation and struggling British group Tullow Oil, which is seeking to finalize selling its stake in the venture.

“We want our people to work fast and start this project,” said President Museveni at the signing ceremony in Chato – Tanzani alongside his Tanzanian counterpart John Pombe Magufuli.

“Our signing today is a crucial step towards implementing the project which will not only create jobs, but also promote cooperation within the region, and stimulate economic development in areas the pipeline crosses.” Museveni added.

However, conservation groups do not welcome the development, saying this project threatens livelihoods and fragile ecosystems.

Oil Pipeline will run from Hoima to Tanga
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