Magufuli Sends Delegation To Uganda For Oil Pipeline Talks

Magufuli Sends Delegation To Uganda For Oil Pipeline Talks

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By Spy Reporter

Kampala, Uganda: Tanzanian president John Magufuli  this week sent a delegation to Uganda for  negotiations of the construction of the oil pipeline project, estimated at USD4 Billion.

They came to   Uganda for another round of negotiations on the Host Government Agreement for the East Africa Crude Oil pipeline. The delegation which includes ministers and diplomats came to Uganda for among other activities a Ministerial meeting that was held at Kampala Serena Hotel. They include Dr. Adelardus Kilangi, Tanzania’s Attorney General, Constitutional Affairs Minsiter , Professor Palamagambi Kabudi and other Ministers. Robert Kasande, the Ministry of Energy Permanent Secretary, confirmed the arrival of the Tanzania delegation, although he remained tightlipped about the proceedings at the meeting. Uganda and Tanzania signed the Inter-Governmental Agreement (IGA) in May 2017 for the East African Crude Oil Pipeline (EACOP) Project.   The agreement provided the foundation for other project agreements, like the Host Government Agreements, Shareholders’ Agreements and Financing Agreements, which have since not been signed. Construction of an over 1400-kilometer-long pipeline from Kabaale, Hoima in Uganda to Chongoleani in Tanga should have started had the governments agreed on the remaining agreements.

The delay in construction of the pipeline and other hindrances forced government to extend its first oil ambition earlier set for 2020 to 2021.  The Joint Venture Partner CNOOC, Total and Tullow Uganda Operations have in the past indicated that the conclusion of the Host Government Agreement could be key in the commercialization of the Lake Albert oil and gas.   According to the agreement, Uganda is expected to pay Tanzania USD12.20 per barrel of oil.

 

 

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