Tanzania and Uganda on Sunday signed a $3.5 billion East Africa Crude Oil Pipeline (EACOP) project. The pipeline will cover 1,445-km.
“We have agreed that Tanzania will take 60 percent of the profits and Uganda will remain with 40 percent,” Tanzania President John Pombe Magufuli said from his hometown of Chato after a meeting with Ugandan President Yoweri Museveni.
President Museveni on the other hand said, “In principle, we agreed that our governments expedite the harmonization of pending issues in the spirit of the East African Community (EAC), the remaining agreements be fast-tracked including the Tanzanian HGA and we quickly carry out the implementation of EACOP project.”
“The total investment of building just the infrastructure of the project in both Uganda and Tanzania will exceed $16 billion during the lifetime of the project,” Museveni said.
Held a meeting with His Excellency John Pombe Magufuli in Chato, Tanzania, we discussed a number of issues of bilateral interest to our countries. Importantly, we discussed issues around the East Africa Crude Oil Pipeline (EACOP) project. pic.twitter.com/7TzbOtvwEL
— Yoweri K Museveni (@KagutaMuseveni) September 13, 2020
Total is the major shareholder in Uganda’s oil fields after agreeing in April to buy Tullow Oil’s entire stake in the jointly held onshore fields in Uganda for $575 million. China’s CNOOC is the other partner.
On Saturday, Total said it had reached an agreement with Uganda in the pipeline’s construction and operation.
“We have today reached major milestones which pave the way to the Final Investment Decision in the coming months,” Pierre Jessua, Managing Director of Total E&P Uganda, said in a statement.