Tanzania, Uganda Ministers ink deal for oil pipeline

21Mar 2016
Prosper Makene
The Guardian
Tanzania, Uganda Ministers ink deal for oil pipeline

THE project on the Uganda-Tanzania crude oil export pipeline has again moved up an ‘ell of an inch’ after Ministers of Energy from the two governments and the contractor, Total E&P Company signed a Project Implementation Plan (PIP).

From Left to Right: Dr. James Mataragio, Prof. Sospeter Muhongo, Engineer Irene Muloni and Adewale Fayemi signing jointly the Tanga to Kampala oil pipeline project.

Speaking during the signing ceremony that took place at the weekend in Arusha, Ugandan Energy and Minerals Development Minister, Engineer Irene Muloni said expressed her appreciation on the government’s commitment to fast-track implementation of the project.

Eng. Muloni said her government is keen to harness its oil resources because it has been a while since the commercial discoveries were made.
“We in Uganda are keen to rapidly develop necessary infrastructure to enable the commodity reach international market,” Eng. Muloni said.

Speaking at the same function, Energy and Minerals Minister, Prof Sospeter Muhongo said the project is an important undertaking to both countries.

Prof Muhongo pointed out that the project will not only boost government revenue through tax and other statutory payments, but also stimulate expansion of Tanga port to meet demand of the project that will transport 200,000 barrels of crude oil per day.

“Implementation of this project will open up the Northern Corridor and allow us to distribute our natural gas to the northern part of the country as well as neighbouring countries,” the minister expounded.

He further noted that the country has enough experience in implementing such pipeline projects making reference to Tanzania Zambia oil pipeline which was built in 1968 between Dar es Salaam and to Ndola in Zambia.
Prof Muhongo also named the Songosongo natural gas pipeline and the latest Mnazi bay to Dar es Salaam pipeline.

The Director General of Total E&P Uganda, Adewale Fayemi said pointed out that his company is ready to fast track the project because funds are already available.

Initially the project was expected to take three years but President John Pombe Magufuli challenged Total to complete it earlier than the 36 months.

This further development came two weeks after the two Heads of State, Presidents John Magufuli of Tanzania and Yoweri Museveni of Uganda, jointly declared that the construction of the crude oil export pipeline will be implemented via the Northern part of Tanzania.

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