“We have reached important milestones that pave the way for the final investment decision in the coming months,” said Pierre Jessua, Managing Director of Total E&P Uganda. “We look forward to concluding a similar agreement with the Tanzanian government and completing the tender process for all major engineering, procurement and construction contracts.” Uganda discovered crude oil reserves about 14 years ago, but commercial production has been delayed in part due to a lack of infrastructure like an export pipeline. In a statement from Total E&P, the October 26 agreement was “a new step in this process, following the implementation of the Ugandan HGA on September 11. Albert`s oil fields and export pipeline are expected to lead to a 60 percent increase in foreign direct investment in both countries during the construction phase. French oil and gas exploration company Total E&P has signed a Host Government Agreement (HGA) with the Ugandan government for the development of the East Africa Crude Oil Pipeline (EACOP) project. HGA will pilot the export pipeline in Uganda and will cost about $3.5 billion. Work is expected to begin early next year. Total said it has reached an agreement with Uganda that protects its rights and obligations in the construction and operation of the pipeline, known as the host government agreement. HGA will also regulate the construction and operation of the crude oil pipeline from Hoima, Uganda, to Tanzania, which benefits both Uganda and Tanzania by transporting crude oil to the international market. KAMPALA, 11 years old. September (Reuters) – Uganda and France Total have reached an agreement that will bring the oil company and its partners closer to building a crude oil pipeline to neighboring Tanzania, the company`s local unit said on Friday. “We look forward to concluding a similar HGA government agreement with the Government of Tanzania and completing the tender process for all major engineering, procurement and construction contracts.” The East African Crude Oil Pipeline (EACOP) has signed a Host Government Agreement (HGA) with Tanzania, as plans for Ugandan oil development near the finish line.
Tanzanian President John Magufuli held talks in September with his Ugandan counterpart Yoweri Museveni. At that meeting, they both agreed to move HGA forward. These follow the government agreement of May 2017. The Tanzanian government and EACOP held discussions on the plans earlier this month in Arusha. The two sides “will continue to work together for the successful implementation of the EACOP project.” Crude oil is viscous and waxed and therefore must be heated to at least 50 degrees Celsius. To maintain this temperature, EACOP will be the longest electrically heated pipeline in the world. The EACOP plan consists of an isolated and buried 24-inch gas pipeline, with two pumping stations in Uganda and four in Tanzania. There will also be a marine export terminal. The pipeline will be 296 km in Uganda and 1,147 km in Tanzania. The government said last year that from the start of pipeline construction, it would take 2-1/2 to three years for it to be completed. The East African state held a presidential election on 28 October.
The results are expected in a week. Opposition Leader Tundu Lissu said the vote was not fair. He asked foreign bodies to investigate “electoral fraud, violence and human rights violations.” Tullow said this week that it is confident of completing the sale in the fourth quarter of this year. Uganda discovered in 2006 crude oil reserves estimated at 6 billion barrels in the Albertine Basin, near the border with the Democratic Republic of Congo.