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Museveni with Suhulu in Uganda

Oil Pipeline: Museveni Travels to Tanzania

Uganda’s Minister of Energy and Mineral Development Dr. Mary Goretti Kitutu has said a number of multibillion-dollar projects were also initiated by the agreements, namely: the implementation of the Tilenga Project in Buliisa and Nwoya districts (approximately US$4 billion), the Kingfisher Project in Hoima and Kikuube Districts (approximately US$1.5 billion), and the East African Crude Oil Pipeline (EACOP) that will cross the ten (10) districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Gomba, Mub
posted onMay 20, 2021
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President Yoweri Museveni traveled to Tanzania today to witness the signing of more agreements that will move forward the construction of the East Africa Crude Oil Pipeline (EACOP).

“President Yoweri Kaguta Museveni is due in the Tanzania capital Dar es Salaam today ahead of the signing ceremony of the East Africa Crude Oil Pipeline (EACOP) Tripartite with counterpart … Samia Suhulu Hassan,” Lindah Nabusayi, the president’s press secretary tweeted Thursday morning.

President Suhulu was in Uganda in April and three key agreements were signed unlocking a number of investment opportunities that will pave the way to Uganda’s first oil, which is expected in four years.

The three agreements are the Tariff and Transportation Agreement (TTA), the Host Government Agreement (HGA) between the Government of Uganda and the EACOP Company, and the Shareholders Agreement (SHA).

[The shareholders are: Uganda National Oil Company (UNOC) with 15%, Total (62%), CNOOC Uganda (8%) and the Tanzania Petroleum Development Corporation (15%)].

Those agreements allowed the EACOP company to award the main Engineering, Procurement and Construction (EPC) contracts so the construction work for the projects can proceed.

Uganda’s Minister of Energy and Mineral Development Dr. Mary Goretti Kitutu has said a number of multibillion-dollar projects were also initiated by the agreements, namely: the implementation of the Tilenga Project in Buliisa and Nwoya districts (approximately US$4 billion), the Kingfisher Project in Hoima and Kikuube Districts (approximately US$1.5 billion), and the East African Crude Oil Pipeline (EACOP) that will cross the ten (10) districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Gomba, Mubende, Lwengo, Sembabule, Kyotera and Rakai in Uganda (about US$3.6bn).

The government is already investing in the required support infrastructure, including Hoima International Airport (over US$500m) and 700 kilometers of oil roads (about US$900m).

In the process, about 14,000 people will be directly employed by the companies and another 45,000 indirectly.

There will also be induced employment of about 105,000 people as a result of the utilization of other services by the oil and gas sector.

“Of the direct employment, 57% are expected to be Ugandans, which is expected to result in an estimated USD 48.5 million annual payment to Ugandan employees,” the minister said, adding that participation of Ugandan enterprises in the provision of goods and services will generate at least 28% of the $15bn investment during the development and construction.

Already, contracts worth $167m out of the $1.362bn Recommendations to Award (RTAs) for the Tilenga and Kingfisher projects have been presented to the Petroleum Authority of Uganda before FID and are to be awarded directly to Ugandan companies.

To tap into these opportunities, interested companies have been asked to register on the National Supplier Database (NSD) through the Petroleum Authority of Uganda website.

The project, upon completion, will also enable Tanzania to earn about $3.2 billion and create between 10,000 to 15,000 jobs over the next 25 years.

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