The East African Crude Oil Pipeline (EACOP) has signed a host government agreement (HGA) with Tanzania, as plans for the Ugandan oil development near the finish line.
A statement from Total E&P said the October 26 deal was “yet another successful step in the process, following the implementation of the Ugandan HGA on September 11. The Lake Albert oilfields and export pipeline should drive a 60% increase in foreign direct investment in the two states during the construction phase.
Tanzanian President John Magufuli held talks with his Ugandan counterpart Yoweri Museveni in September. At this meeting, they both agreed to press ahead with HGAs. These follow the intergovernmental agreement in May 2017.
The Tanzanian government and EACOP held talks on the plans in Arusha early this month. The two sides “shall continue to work together towards a successful implementation of the EACOP project”.
The EACOP plan consists of a 24-inch insulated and buried pipeline, with two pumping stations in Uganda and four in Tanzania. There will also be a marine export terminal. The pipeline will run for 296 km in Uganda and 1,147 km in Tanzania.
Total is in the process of buying out its partner Tullow Oil. Uganda approved the sale this month and completion is expected imminently.
The crude is viscous and waxy so must be heated to at least 50 degrees Celsius. In order to preserve this temperature, EACOP will be the longest electrically heated pipeline in the world.
Tanzania signed off on the environmental impact assessment (EIA) in February this year.
The East African state held a presidential election on October 28. Results are expected in a week. Opposition leader Tundu Lissu has alleged the vote was not fair. He has called on foreign bodies to investigate “electoral fraud, violence and human rights violations “.