Go-ahead given to $3.5 billion crude oil pipeline

TANZANIAN PRESIDENT John Magufuli and his Ugandan counterpart Yoweri Museveni have signed an intention to start implementing the construction of the East African Crude Oil Pipeline (EACOP).

Uganda has discovered around 6.5 billion barrels of oil since 2006 – Total and partners have helped it develop a 1,443-kilometre-long pipeline to transport oil from Hoima, Uganda, to Tanga, Tanzania, where it can be distributed across the world. The cost of the project is $3.5 billion.

“This is an important step towards the implementation of the project. We, the presidents, have signed and I will see who will delay it,” said Dr Magufuli during a speech.

The two leaders have agreed that Tanzania will receive a 60 percent share of the profits accrued from the pipeline project, as around 80 percent of the pipe will lie on its land.