Neighbouring east African countries, Tanzania and Uganda have announced that a crude oil pipeline is on the cards with construction planned to commence early next year. According to local media, Uganda's energy minister, Irene Muloni, confirmed the development of a crude oil pipeline following discussions the ministry held on Tuesday with a visiting Tanzanian delegation. Muloni said the two countries had agreed to fast-track the project, which will cover 1,443 kilometres. It is reported that oil explorations have uncovered more than 6.5 billion barrels of crude oil reserves from about 40% of the Albertine basin in western Uganda. Muloni said: “Every activity in respect to the project will be done in a fast tracking mode. We have agreed to meet in Tanga (Tanzania) in October this year to launch the front-end-engineering-design for the project.” The minister revealed that feasibility studies estimate the project to cost $3.55 billion. East African crude oil pipeline According to the media, Muloni said a pipeline company will be set up and Uganda, Tanzania and other interested east African states will have shares in it. “The pipeline is very attractive and viable. Securing financing will be explored in much detail. Contacts are being made to potential funders,” she stated. Both the countries’ leaders are reported to have agreed to name the pipeline project reflecting the East African Community and the second ministerial meeting endorsed, ‘East African Crude Oil Pipeline'. A joint media release, signed by Muloni and her Tanzanian counterpart, Sospeter Muhongo, read: “The ministerial meeting...
East African crude oil pipeline on the cards
Posted on: July 15, 2016
Posted on: July 15, 2016