Uganda–Tanzania Crude Oil Pipeline

From SourceWatch
Jump to navigation Jump to search
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.
Sub-articles:

Uganda–Tanzania Crude Oil Pipeline, also known as the East African Crude Oil Pipeline (EACOP), is a proposed oil pipeline in East Africa.[1]

Location

The oil pipeline would start in Buseruka sub-county, Hoima District, in Uganda's Western Region. It would travel in a general south-easterly direction to pass through Masaka in Uganda, Bukoba in Tanzania, loop around the southern shores of Lake Victoria, continue through Shinyanga and Singida town, and end at the Port of Tanga, Tanzania, for export from the Indian Ocean.[2]

Loading map...

Project Details

  • Operator: Total SA[1]
  • Current capacity:
  • Proposed capacity: 200,000 barrels per day
  • Length: 1,444 kilometers
  • Status: Construction
  • Start Year: 2020

Background

The pipeline is intended to transport crude oil from Uganda's oil fields to the Port of Tanga, Tanzania on the Indian Ocean.[3] The pipeline is planned to have capacity of 216,000 barrels per day.[4][5]

Uganda previously agreed to build a joint Uganda–Kenya Crude Oil Pipeline (UKCOP) to the Lamu Port in Kenya.[6][7] Concerns regarding security and cost, however, reportedly motivated parallel negotiations with Tanzania regarding a shorter and safer route to Port Tanga, with the support of the French petroleum conglomerate Total SA.[8][9]

At the 13th Northern Corridor Heads of State Summit in Kampala in April 2016, Uganda officially announced its choice for the Tanzania route for its crude oil, in preference to the Mombasa or Lamu routes in Kenya.[10][11] At the same summit, President Uhuru Kenyatta announced that Kenya would build the Kenya Crude Oil Pipeline on its own, thereby abandoning the Uganda–Kenya Crude Oil Pipeline (UKCOP).[12][13]

In July 2016, it was announced that construction of the pipeline would begin in January 2017 and last 36 months.[14] Completion of the pipeline is planned for 2020.[15]

As of 2017 the pipeline is under construction.[16]

Ownership

As at August 2017, the list of potential equity partners includes:[17] (1) The government of Uganda, represented by Uganda National Oil Company, (2) the government of Tanzania, represented by the Tanzania Petroleum Development Corporation, (3) Total SA, (4) Tullow Oil and (5) China National Offshore Oil Corporation (CNOOC).[17]

Cost and funding

The 1,444-kilometer planned pipeline is expected to be built at a budgeted cost of US$3.5 billion.[4][18]

Negotiations and the search for international lenders is ongoing. Uganda and Tanzania are being advised by Standard Bank of South Africa, while Total SA is being advised by Sumitomo Mitsui Banking Corporation. The London-based firm law firm Clifford Chance is advising Total SA on legal matters, while CNOOC is advised by the Imperial Bank of China.[17]

Articles and resources

References

  1. ↑ 1.0 1.1 Uganda–Tanzania Crude Oil Pipeline, Wikipedia, accessed September 2017
  2. ↑ Musisi, Frederic (7 March 2016). Oil pipeline: Which way for Uganda?. Retrieved on 7 March 2016.
  3. ↑ Elias Biryabarema, and Fumbuka Ng'wanakilala (2 March 2016). Uganda, Tanzania plan oil pipeline. Reuters.com. Retrieved on 3 March 2016.
  4. ↑ 4.0 4.1 The Independent Uganda (6 August 2017). Uganda: Museveni, Magufuli Lay Foundation Stone for Oil Pipeline. Retrieved on 8 August 2017.
  5. ↑ Barigaba, Julius (6 March 2017). Museveni’s visit to Dar rescues oil pipeline deal, sets project timelines. Retrieved on 6 August 2017.
  6. ↑ Biryabarema, Elias (25 June 2013). Uganda agrees to plan for oil pipeline to new Kenya port. Reuters.com. Retrieved on 28 April 2016.
  7. ↑ Bariyo, Nicholas (25 June 2013). Uganda, Kenya Agree to Construct Crude export Pipeline to Port Lamu. Archived from the original on 6 July 2013. Retrieved on 28 April 2016.
  8. ↑ Allan Olingo, and James Anyanzwa (17 October 2015). Regional power play in tussle over new route of Uganda oil pipeline. Retrieved on 3 March 2016.
  9. ↑ Abdalah, Halima (13 September 2015). Oil firms prefer Tanga pipeline route to Lamu. Retrieved on 3 March 2016.
  10. ↑ Musisi, Frederic (23 April 2016). Uganda chooses Tanga route for oil pipeline. Retrieved on 23 April 2016.
  11. ↑ Musisi, Frederick (26 April 2016). Transporting oil to Tanzania to cost UShs40,000 per barrel. Retrieved on 26 April 2016.
  12. ↑ PSCU (23 April 2016). Kenya will build own pipeline, Uhuru tells EAC summit. Retrieved on 26 April 2016.
  13. ↑ Ligami, Christabel (16 April 2016). As Uganda chooses Tanzania pipeline route, Kenya to go it alone. Retrieved on 26 April 2016.
  14. ↑ Mugerwa, Francis (8 July 2016). Building of Hoima-Tanzania oil pipeline will start in January. Retrieved on 12 July 2016.
  15. ↑ Reuters (3 August 2016). Tanzania aims to complete oil pipeline from Uganda in 2020. Retrieved on 3 August 2016.
  16. ↑ The EastAfrican (5 August 2017). Magufuli, Museveni lay foundation stone for crude oil pipeline. Retrieved on 5 August 2017.
  17. ↑ 17.0 17.1 17.2 Musisi, Frederic (16 August 2017). Uganda, TZ target ‘flexible’ European pipeline funding. Retrieved on 16 August 2017.
  18. ↑ Kidanka, Christopher (6 August 2017). Tanzania ready to take up pipeline contracts. Retrieved on 6 August 2017.

Related SourceWatch articles

External resources

External articles

{[Wikipedia}}

Retrieved from "https://dev.sourcewatch.org/index.php?title=Uganda–Tanzania_Crude_Oil_Pipeline&oldid=728744"