Tanzanian delegation in Uganda for crude oil pipeline negotiations

Kampala, Uganda | THE INDEPENDENT | Ugandan and Tanzanian officials are meeting in Kampala for another round of negotiations on the Host Government Agreement for the East Africa Crude Oil pipeline.

Sources at the Energy Ministry have indicated to URN that about four Ministers from Tanzania are already in Uganda for the Ministerial meeting to be held at Kampala Serena Hotel. The team includes, Dr. Adelardus Kilangi, Tanzania’s Attorney General.

Energy Ministry Permanent Secretary, Robert Kasande confirmed the arrival of the Tanzania delegation but was hesitant to divulge details about the meeting that could move the close to four-billion-dollar project ahead.

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.

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.

Construction of an over 1400-kilometer-long pipeline from Kabaale, Hoima in Uganda to Chongoleani in Tanga should have stated had the governments agreed on the remaining agreements. The delay in construction of the pipeline together with other impediments have pushed government to extend its first oil ambition earlier set for 2020 to 2021.

Uganda is expected to pay Tanzania US $12.20 per barrel of oil, according to the past negotiations between the two governments.

In a related development, sources indicate that the National Environment Management Authority’s oil and gas team is expected to review the Environmental Social Impact Assessment (ESIA) report for the pipeline project. NEMA is required to ensure that the project doesn’t significantly affect the environment and people’s livelihoods.

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