07 Aug Construction work begins on $3.55 billion Uganda-Tanzania oil pipeline
The leaders of Tanzania and Uganda have paved the way for the start of construction work on a US$3.55 billion crude oil export pipeline by laying a foundation stone.
The 1,445km pipeline will pump 216,000 barrels of oil per day from the Western region of landlocked Uganda to Tanzania’s Tanga seaport on the Indian Ocean, where it will be exported to international markets.
At the laying ceremony in Tanga, Tanzanian President John Magufuli and Uganda’s President Yoweri Museveni urged the projects three joint venture partners, Total, Tullow Oil and China National Offshore Oil Corporation (CNOOC), to speed up the construction of the pipeline.
“We don’t need to delay the completion of the project for almost three years. They can do it even night and day to ensure the project is completed as quickly as possible,” said Magufuli.
“Act with big speed and make sure you finish this project before 2020.”
Uganda also announced it had agreed preliminary terms with a consortium of investors to build its first oil refinery, having previously suffered setbacks during protracted negotiations with various investors.
Uganda first discovered crude oil reserves in its Western region back in 2006, and estimates overall reserves at 6.5 billion barrels.