Excitement:Museveni Flies To Tanzania,Inks Fresh Oil Deals With Magufuli After Total Agreement

Excitement:Museveni Flies To Tanzania,Inks Fresh Oil Deals With Magufuli After Total Agreement

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By Spy Uganda

Kampala: Today September 13, 2020, President Yoweri Museveni of Uganda and Tanzania’s John Pombe Magufuli engaged in detailed trade talks with the aim of shaping business prospects between their countries.

READ ALSO: Finally Uganda Gov’t, Total Sign Agreement On Crude Oil Pipeline Construction

President Museveni Signing New Deals With Tanzania.

Museveni flew to Dar es Salaam this morning where he was received by his Tanzanian counterpart.

READ ALSO: Total Buys Out Tullow’s Stake In Uganda’s Oil Sector

According to Museveni, the meeting was meant to discuss issues of bilateral interest majorly those around the East Africa Crude Oil Pipeline (EACOP) project. “It was a follow-up meeting after Uganda signed the Host Government Agreement with Total recently,” Museveni said.

President Museveni added, “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.”

 

In the growing trade relations between the two countries, Tanzania announced on Monday that it wants to build a pipeline to pump natural gas to neighbouring Uganda.

READ ALSO: Tullow Oil Axes Dfcu Boss Mugerwa, Replaces Him With Nampeera

State-run Tanzania Petroleum Development Corporation (TPDC) said it was looking to hire a contractor to conduct a feasibility study to determine current and future natural gas demand by identifying all potential customers.

President Museveni (Left) Matching With President Magufuli (Right).

Natural gas reserves in Tanzania are estimated to over 57 trillion cubic feet (tcf), mostly in offshore fields in the south of the country.

The development comes after Uganda and France’s Total on Friday, September 11, 2020 reached an agreement that will bring the oil firm and its partners closer to starting construction of a crude pipeline to neighbouring Tanzania.

READ ALSO: ‘Uganda Aims For 1st Quarter Investment Decision On Oil Pipeline’- Minister Muloni

The 1,445-km (900-mile) East African Crude Oil Pipeline, costing $3.5 billion, would pass through neighbouring Tanzania to the Indian Ocean port of Tanga.

Total said it had reached an agreement with Uganda protecting its rights and obligations in the pipeline’s construction and operation – known as the host government agreement.

READ ALSO: ‘We’re Not Yet Interested In Uganda Oil Project’-Total Boss Breaks Camel’s Back!

“We have today reached major milestones which pave the way to the Final Investment Decision in the coming months.  We now look forward to concluding a similar HGA with the Government of Tanzania and to completing the tendering process for all major engineering, procurement and construction contracts.” Total Chief Executive Officer Patrick Pouyanné said.

The government said last year once pipeline construction begins, it would take 2-1/2 to three years to complete.

Uganda discovered crude oil reserves estimated at 6 billion barrels in the Albertine rift basin near the border with the Democratic Republic of Congo in 2006.

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