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MILESTONE! Uganda, Tanzania sign oil pipeline deal

Uganda, Tanzania and the two oil companies of Total E&P, and China’s CNOOC have finally signed the East African Crude Oil Pipeline deal to ensure oil production begins (PHOTO/PPU)

The government of Uganda and its Tanzanian counterpart have today signed the East African Crude Oil Pipeline agreement that effectively signals the start of the construction of the pipeline that will transport Uganda’s oil from Hoima to the port of Tanga.

Among the agreements signed today between the officials from the government of Uganda and Tanzania and the oil companies’ CNOOC and Total are; Host Government agreement and the Tariff and Transportation agreement.

Speaking after the signing of the agreement that is over $10billion, President Yoweri Kaguta Museveni, said that he chose to work with Tanzania because of its historical contribution towards Uganda.

“I originally preferred an oil refinery only because of the high demand in the East African region that imports a lot to serve their markets. The oil companies were biased for crude oil exports and a pipeline. The compromise was we have both,” he said.

Museveni said Tanzania helped Uganda to sort out the political mess that had been created by past leaders.

On why he chose April 11 as the new date to sign the agreement, Museveni said it was the same day in 1979 when the Tanzanian army launched the assault on Kampala and deposed President Idi Amin.

“I thank President Suluhu for accepting my sentimental request for the signing to be held today, April 11. It is today, 42 year ago, that Lt. Col Oyite Ojok announced the Tanzania army TPDF and UNLA victory over Idi Amin,” Museveni said

For her part, Samia Hassan Suluhu, the president of United Republic Of Tanzania who assumed the presidency last month after the death of John Pombe Magufulu, the pipeline will go a long away in cementing the relationship that her country has with Uganda.

She said in the region grappling with unemployment, the pipeline will create a number of jobs especially for the young people.

“I encourage all countries in the region to continue building infrastructure and projects that will spur development,” Suluhu said.

Suluhu also thanked Uganda for agreeing to postpone the signing of the agreement from the original date of March 22 to today in honor of Magufuli who she talked about as having been very enthusiastic about the project.

“This kind of gesture portrays a true definition of partnership. Postponing this event was the honor of his commitment…,” Suluhu said.

The Chairman and Chief Executive Officer of Fran Oil Giant Total , Patrick Pouyanne, thanked President Museveni for his unwavering commitment to the oil project.

He said signing the agreement is a historical milestone in the journey of the oil industry not only for Uganda and Tanzania and for the whole of the East African region.

“It’s a very large project one of the largest to be developed on this content. Its more than $10billion dollars. It hasn’t been possible without your commitment. This is the beginning of the journey that will take four years for the oil to start flowing from Uganda to Tanzania,” Pouyanne said.

The construction of the pipeline is expected to take four years for the oil to start flowing. If complete, it will be the longest heated crude oil pipeline line in the world.

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JOINT COMMUNIQUE BETWEEN THE PRESIDENT OF THE REPUBLIC OF UGANDA AND THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA ON THE IMPLEMENTATION OF THE EAST AFRICAN CRUDE OIL PIPELINE (EACOP) PROJECT ON THE 11TH APRIL, 2021 AT THE STATE HOUSE ENTEBBE, UGANDA

NOTING that on 31st March, 2021, His Excellency Yoweri Kaguta Museveni, President of the Republic of Uganda invited Her Excellency Samia Suluhu Hassan, President of the United Republic of Tanzania to attend and witness the signing ceremony of the Host Government Agreement between the Government of the Republic of Uganda and the EACOP Company on 11th April 2021 at State House, Entebbe Uganda;

NOTING that the two Heads of State held bilateral talks on a wide range of issues of mutual interest and expressed their satisfaction with the excellent relations and cooperation that so happily exist between the two countries and further reiterated the commitment to deepen cooperation in various areas including trade, infrastructure, transport and social affairs;

FURTHER NOTING that the Heads of State observed a minute of silence on the passing on of the late President, His Excellency Dr. John Pombe Joseph Magufuli, the Fifth President of the United Republic of Tanzania. In this regard, the two Presidents cherished the immense contribution of the late President Magufuli in working towards the cause of the East African Community; fostering and nurturing bilateral relations and cooperation between the two countries and in providing an unequivocal support and commitment to the realization and implementation of the strategic East African Crude Oil Pipeline (EACOP) Project;

UNDERSTANDING that on 26th May 2017 the Governments of the Republic of Uganda and the United Republic of Tanzania signed the Intergovernmental Agreement (IGA) on the implementation of the East African Crude Oil Pipeline (EACOP) Project;

RECALLING the commitments made by His Excellency the late Dr. John Pombe Joseph Magufuli, the Fifth President of the United Republic of Tanzania and His Excellency Yoweri Kaguta Museveni, President of the Republic of Uganda during their meeting at Chato, Geita Tanzania on 13th September 2020, that; each State Party to conclude the Host Government Agreement with EACOP Project Company; commence negotiations of all pending Project Agreements with immediate effect and expedite the implementation of the EACOP Project;

ACKNOWLEDGING the progress made in negotiation and finalization of the Host Government Agreement between the United Republic of Tanzania and the EACOP Company and commending the signing of the Host Government Agreement between the Government of the Republic of Uganda and the EACOP Company on 11th April 2021 and further noting that all outstanding issues related to the EACOP Project have been amicably resolved;

AND ALSO RECOGNIZING that the Shareholding Agreement (SHA) has also been signed by all the stakeholders on 11th April, 2021;

REITERATING their commitment and realisation of the EACOP Project for the benefit of the People of the Republic of Uganda and the United Republic of Tanzania in the spirit of East African Cooperation; and

NOW THEREFORE, the two Heads of State agree and direct as follows:

That each State Party takes all necessary steps required for the implementation of the EACOP Project;

That having concluded the Tariff and Transportation Agreement (TTA) and the Host Government Agreement for the Republic of Uganda and the Shareholding Agreement (SHA) for Shareholders to the EACOP Company, the companies can now launch the EACOP Project and award the main Engineering, Procurement and Construction Contracts (EPC);

That the United Republic of Tanzania to finalise the signing of the Host Government Agreement and related agreements between the Government and EACOP Company.

Done at Entebbe, Uganda on this 11th day of April, 2021.

…………………………………….

H.E. Yoweri Kaguta Museveni PRESIDENT OF THE REPUBLIC OF UGANDA

…………………………………
H.E. Samia Suluhu Hassan PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA

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