- Earlier today French energy giant, Total, signed agreements for the Tilenga oil project in Uganda and the EACOP (East African Crude Oil Pipeline) project with Uganda and Tanzania.
- The deal is expected to transform Uganda into a major producer and exporter of crude oil.
Total CEO Patrick Pouyanne was among those who signed the agreements earlier today, according to a national television broadcast from the ceremony attended by Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan. China’s largest offshore oil and gas producer,Cnooc Ltd. and Uganda National Oil Co. are also participating partners.
Related news: Banks lobbied not to finance the 1445km East African Crude Oil Pipeline
Pouyanne called the signing of pacts a historic milestone for production work and the export pipeline that will attract more than $ 10 billion in investment. “This is a very important development, one of the most important that will be developed on this continent”, although this is only the beginning of a process that will see oil flow in early 2025, he said.
Related news: Total recently pulled out of its US25 billion LNG project in Alfungi, Mozambique due to ongoing security concerns
The partners will develop the Tilenga and Kingfisher discoveries near Lake Albert, as well as a 1,445km heated pipeline to transport waxy crude from Uganda for export to Tanga Port in northern Tanzania. Total holds 57% of the oil field licenses and a significant stake in the pipeline project.
Total expects production to reach a plateau of 230,000 barrels per day.
“The signing of East African Crude Oil Pipeline (EACOP) is a historic and an important occasion not only for the nations of Uganda and Tanzania but for the entire East African Community,” Tanzania’s president Samia Suluhu Hassan said. She added that that the project will have an impact on the social-economic development of the East African community. As It will provide long and short-term employment opportunities to various citizens.
While President Museveni said, “the Crude Oil pipeline project can be a core of other similar pipeline operations in the region.”
Author: Bryan Groenendaal
