Uganda\u2019s President Yoweri Museveni will this morning\u00a0 host his \u00a0Tanzanian counterpart President, Samia Suluhu Hassan to among others ,sign the long awaited \u00a0oil pipeline deal which her predecessor the late John Pombe Magufuli worked so hard to realise .<\/p>\n\n\n\n
The two heads\u2019 of state meeting at\u00a0 <\/strong>State House Entebbe- \u00a0will also \u00a0see the two principals witness the signing of the \u00a0Final Investment Decision \u00a0(FID)which will in effect kick-start the construction of the \u00a0\u00a0crude oil pipeline a huge milestone for the two \u00a0East African nations..<\/p>\n\n\n\n This particular event had been put off following the sudden death of President Magufuli . The East African Crude Oil Pipeline is a 1,445-kilometer-long pipeline from Uganda\u2019s oil wells in Hoima district to Tanzania\u2019s seaport of Tanga .<\/p>\n\n\n\n The pipeline will cover 296km in Uganda passing through Hoima, Kyankwanzi, Mubende, Gomba, Kyotera, Lwengo, Ssembabule, Rakai and Kikuube and 1443km in Tanzania through the regions of Kagera, Gieta, Shinyanga, Tabora, Singida, Dodoma , Manyara and Tanga.<\/p>\n\n\n\n The $3.5 billion oil pipeline project is the longest electrically heated pipeline in the world and it will be heated because Uganda\u2019s oil is waxy in nature.<\/p>\n\n\n\n Uganda has about 1.7 billion barrels of recoverable oil discovered in the Albertine Graben on the border between Uganda and DR Congo at the Kingfisher and Tilenga fields. The two oil fields are operated by China National Offshore Oil Corporation (CNOOC) and Total S.A.<\/p>\n\n\n\n The pipeline project is being implemented by a joint venture of CNOOC and Total; Uganda government through the Uganda National Oil Company and Tanzania Petroleum Development Corporation.<\/p>\n\n\n\n How Uganda\u2019s nascent Automotive Industry championed by Uganda\u2019s flagship Kiira Motors will benefit<\/strong><\/p>\n\n\n\n Uganda\u2019s automotive industry captain -Kiira Motors Corporation (KMC) whose Vehicle Plant at the Jinja Industrial And Business Park is set to be completed in the next three months is set to be one of the major beneficiaries of Uganda Oil and gas sector .<\/p>\n\n\n\n This is because after crude oil is removed from the ground, it is sent to a refinery where different parts of the crude oil are separated into useable petroleum products. These petroleum products include plastics, distillates such as diesel fuel and heating oil all by-products that can be used in the building and powering of vehicles made in Uganda.<\/p>\n\n\n\n Kiira Motors Corporation led by Prof. Sandy Stevens Tickodri -the Executive Chairman and Mr. Paul Isaac Musasizi- the CEO are set to produce at least 22 vehicles a day and 5,000 units a year – at their start-up facility in Jinja .<\/p>\n\n\n\n The company and its partners plan to produce and deploy 1,030 Buses by end of 2021, 50 of which will be electric. The initiative is aimed at modernizing public transport in the urban centers in Uganda and beyond, while building the indigenous motor vehicle industry through technology transfer and localization of auto parts manufacturing.<\/p>\n\n\n\n Background<\/strong><\/p>\n\n\n\n Last year , France\u2019s Petroleum giant Total acquired Tullow\u2019s entire interests in a major deal that kick-start Uganda\u2019s oil dream journey in the lake Albert multi-million project which had stalled for years.<\/p>\n\n\n\n In a press statement, issued in Paris on April 23, 2020 Total announced that it had bought Tullow\u2019s entire interests in Uganda Lake Albert Development project including the East African Crude Oil Pipeline.<\/p>\n\n\n\n Total will pay Tullow an estimated USD 5,775M with an initial payment of USD 500M at closing and USD 75M when the partners take the Final Investment Decision (FID) to launch the project which is dear to Yoweri Museveni Uganda\u2019s longest-serving president.<\/p>\n\n\n\n In addition, conditional payments will be made to Tullow linked to production and oil price, which will be triggered when Brent prices are above USD62 a barrel. The statement indicated that the terms of the transaction had been discussed with the relevant government of Uganda and Uganda Revenue Authority (URA)officials and an agreement in principle had been reached on the tax treatment of the transaction.<\/p>\n\n\n\n Under the terms of the deal, Total will acquire all of Tullow\u2019s existing 33.3% stake in each of the Lake Albert project licences, EAI ,EAIA, EA2 and EA3A plus the proposed East African Crude Oil Pipeline (EACOP) system. The transaction , however, is subject to the approval of Tullow\u2019s shareholders, to customary regulatory and government approvals and to CNOOC\u2019s right to exercise pre-emption on 50% of the deal.<\/p>\n\n\n\n Total\u2019s Chairman and Chief Executive Officer , (CEO) Mr. Patrick Pouyanne said that the acquisition will enable the company together with its partners to move the project forward thus driving the costs down in order to deliver a robust long-term project.<\/p>\n\n\n\n Uganda\u2019s oil production has previously be bogged down by disputes over the tax revenues accruing to the Uganda government leading to legal battles in the High Courts of Uganda and the United Kingdom. Industry experts say that Uganda is likely to get far much less revenue in taxes on the current deal and the plummeting oil prices due to the Covid-19 pandemic cannot help matters either.<\/p>\n\n\n\n Oil prices have gone negative<\/strong><\/p>\n\n\n\n For the first time ever, the price of U.S. crude oil went in the negatives due to the global-novel Covid 19 pandemic that obliterated demand for energy. As the pandemic wrecked havoc and brought down global economies – traders and producers paid as much as $40 for the privilege of parting with a barrel of oil.<\/p>\n\n\n\n Plummeting prices – set off a mad dash to store oil, as producers hoped to weather the storm and sell their supply after the pandemic. But storage space is finite and growing ever more expensive as buyers disappear from energy markets.<\/p>\n\n\n\n With many people being vaccinated against the deadly pandemic it is hoped that Uganda\u2019s oil sector will benefit as the global oil markets bounce back.<\/p>\n\n\n\n msserwanga@gmail.com<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Uganda\u2019s President Yoweri Museveni will this morning\u00a0 host his \u00a0Tanzanian counterpart President, Samia Suluhu Hassan to among others ,sign the<\/p>\n","protected":false},"author":2,"featured_media":2982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[130,65],"tags":[],"class_list":["post-2981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-national-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/04\/56927314_401.jpg","jetpack-related-posts":[{"id":2987,"url":"https:\/\/prowebinhost.com\/anzu\/museveni-suluhu-sign-east-african-crude-pol-pipeline-oil-companies-say-oil-will-start-flowing-in-2025\/","url_meta":{"origin":2981,"position":0},"title":"MUSEVENI , SULUHU SIGN EAST AFRICAN CRUDE OIL PIPELINE; OIL COMPANIES SAY OIL WILL START FLOWING IN 2025","author":"MOSES SSERWANGA","date":"April 12, 2021","format":false,"excerpt":"President Yoweri Museveni\u00a0 of Uganda and his counterpart President Samia Suhulu Hassan of \u00a0Tanzania were joined by the two oil companies of Total E&P, and China\u2019s CNOOC to finally \u00a0sign the East African Crude Oil Pipeline in the Capital Kampala . The \u00a0deal will \u00a0ensure oil production begins and is\u2026","rel":"","context":"In "National Development"","block_context":{"text":"National Development","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-development\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/04\/m7-suhulu.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/04\/m7-suhulu.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/04\/m7-suhulu.jpg 1.5x"},"classes":[]},{"id":5606,"url":"https:\/\/prowebinhost.com\/anzu\/tanzanias-samia-suluhu-here-tomorrow-for-a-two-day-state-visit-to-be-updated-on-ugandas-oil-and-gas-sector\/","url_meta":{"origin":2981,"position":1},"title":"Tanzania\u2019s Samia Suluhu here tomorrow for a two-day state visit , to be updated on Uganda’s oil and gas sector","author":"UgandaUpdate","date":"May 9, 2022","format":false,"excerpt":"The President of the United Republic of Tanzania H.E Samia Suluhu Hassan arrives in the country tomorrow on -a two-day state visit at the invitation of President Yoweri Kaguta Museveni. President Samia Suluhu Hassan and her delegation will have a bilateral meeting with President Museveni and the Uganda delegation at\u2026","rel":"","context":"In "EAC Regional News"","block_context":{"text":"EAC Regional News","link":"https:\/\/prowebinhost.com\/anzu\/category\/eac-regional-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/Samia-hassan-VP.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/Samia-hassan-VP.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/Samia-hassan-VP.jpg 1.5x"},"classes":[]},{"id":16438,"url":"https:\/\/prowebinhost.com\/anzu\/tanzania-leader-gives-timeline-on-regional-oil-pipeline-project\/","url_meta":{"origin":2981,"position":2},"title":"Tanzania leader gives timeline on regional oil pipeline project","author":"UgandaUpdate","date":"February 9, 2026","format":false,"excerpt":"Tanzanian President Samia Suluhu Hassan has told her Ugandan counterpart Yoweri Museveni that works for an East African Crude Oil Pipeline Project were on track to finish in five months. President Museveni is on an official working visit on\u00a0 the invitation of Tanzania\u2019s first female leader. In a meeting between\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5617,"url":"https:\/\/prowebinhost.com\/anzu\/uganda-and-tanzania-to-collaborate-on-security-for-eacop\/","url_meta":{"origin":2981,"position":3},"title":"Uganda and Tanzania to collaborate on security for EACOP.","author":"UgandaUpdate","date":"May 12, 2022","format":false,"excerpt":"President Yoweri Kaguta Museveni and his counterpart Tanzania's President Samia Suluhu Hassan have stated that the two neighboring countries will collaborate to ensure the security of the East Africa Crude Oil Pipeline (EACOP) after a bilateral meeting they held at State House Entebbe. President Samia Suluhu Hassan was in Uganda\u2026","rel":"","context":"In "EAC Regional News"","block_context":{"text":"EAC Regional News","link":"https:\/\/prowebinhost.com\/anzu\/category\/eac-regional-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/min.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/min.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/min.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/min.jpg 2x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/05\/min.jpg 3x"},"classes":[]},{"id":4418,"url":"https:\/\/prowebinhost.com\/anzu\/energy-minister-nankabirwa-calls-on-parliament-to-fast-track-the-passing-of-the-east-african-crude-oil-pipeline-law\/","url_meta":{"origin":2981,"position":4},"title":"ENERGY MINISTER NANKABIRWA CALLS ON PARLIAMENT TO FAST TRACK THE PASSING OF THE EAST AFRICAN CRUDE OIL PIPELINE LAW","author":"UgandaUpdate","date":"October 28, 2021","format":false,"excerpt":"The Minister of Energy and Mineral Development (MEMD) Hon. Ruth Nankabirwa has underscored the Importance of the East African Crude Oil Pipeline (EACOP) (Special Provisions) Bill -as an important \"legislation of our time\"- because it seeks to facilitate the first crude oil pipeline development in Uganda and the East African\u2026","rel":"","context":"In "National Development"","block_context":{"text":"National Development","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-development\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/IMG-20211028-WA0070-1.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/IMG-20211028-WA0070-1.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/IMG-20211028-WA0070-1.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/IMG-20211028-WA0070-1.jpg 2x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2021\/10\/IMG-20211028-WA0070-1.jpg 3x"},"classes":[]},{"id":16441,"url":"https:\/\/prowebinhost.com\/anzu\/tanzania-uganda-line-up-major-infrastructure-projects-as-oil-exports-near\/","url_meta":{"origin":2981,"position":5},"title":"Tanzania, Uganda line up major infrastructure projects as oil exports near","author":"UgandaUpdate","date":"February 9, 2026","format":false,"excerpt":"Tanzania and Uganda are preparing to begin exporting crude oil to the international market in July, a move leaders from both countries say will serve as a catalyst for a wider programme of major infrastructure, energy and transport projects aimed at strengthening economic cooperation. Speaking on Saturday at State House\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/pc0aOV-M5","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/2981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/comments?post=2981"}],"version-history":[{"count":1,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/2981\/revisions"}],"predecessor-version":[{"id":2983,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/2981\/revisions\/2983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media\/2982"}],"wp:attachment":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media?parent=2981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/categories?post=2981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/tags?post=2981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}