Battle: Dar es Salaam vs Nairobi
Battle: Dar es Salaam vs Nairobi
Chamoto
Platinum Member
- Dec 7, 2007
- 9,883
- 22,305
Why did you fVck up the energy.
Moyo unaumia kwa nini unageuza nguo, karaha... eti karaha
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,720
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Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,720
- 107,165
What the crude oil pipeline means to Tanzania
THURSDAY SEPTEMBER 17 2020
In Summary
Dar es Salaam. Tanzanian authorities have one month in which to conclude and sign the Host Government Agreement (HGA) with upstream firms involved in the East African Crude Oil Pipeline (EACOP). The country expects billions of dollars from the joint project with Uganda.
The upstream firms include Total, CNOOC and UNOC.
This is what those involved in the HGA in Tanzania have been told, according to EACOP’s National Coordinator in Tanzania, Mr Salum Mnuna.
The $3.5 billion pipeline will transport crude oil from Hoima in Uganda to Tanga port in Tanzania.
The directive to have the HGA signed within a month comes after President John Magufuli and Uganda President Yoweri Museveni met on Monday, September 14 and signed an intergovernmental agreement (IGA) to fast-track the requisite legal and commercial agreements.
It also comes after the signing of an HGA by Uganda.
Completion of the HGA and the existing legal procedures would pave the way for a Final Investment Decision (FID), expected by the end of this year.
The two Presidents agreed that each nation commences negotiations on all pending project issues immediately.
“The directive has been issued after the signing of the IGA this week,” revealed Mr Mnuna.
So far, Tanzania has completed the Environmental and Social Impact Assessment (ESIA) for the project, among other prerequisites.
Referring to the financial gains that Tanzania will get from the pipeline project, Mr Mnuna said the country would earn $1 billion a year (about Sh2.3 trillion) as income tax for the next 25 years.
The revenues will be generated on the start of the pipeline operations, whereby Tanzania will earn 60 percent of the paid tax - with Uganda pocketing 40 percent.
“There will be other financial gains that we will get from the project - apart from tax,” Mr Mnuna revealed.
He also disclosed that the Tanzanian authorities had granted the oil companies a VAT exemption on imported construction equipment like heavy machineries in order to facilitate construction of the pipeline which will have the capacity to transport 216Kbd: that is some 216,000 barrels of oil per day.
He added that contracted Ugandan shippers will pay $12.77 per barrel to EACOP Company for transporting crude oil from the production site to international markets.
As it stands in terms of the share-holding structure for the oil project, the up-streamers include Total Oil (66.7 percent after acquiring Tullow’s 33.3 share) and the China National Offshore Oil Corporation (CNOOC), with 33.3 percent shares. However, the Uganda National Oil Company (UNOC) will soon join the upstream stakeholders, holding 15 percent, Total oil stated.
During the construction phase, the 1,445km-long pipeline will create employment in the form of thousands of jobs throughout the pipeline’s route - and will unlock East Africa’s potential as it will result to over 60 percent increase in Foreign Direct Investments (FDIs) in Uganda and Tanzania.
During his recent visit to Chato in Tanzania, Uganda President Museveni said the project is set to exploit 6.5 billion barrels of oil. This is only 40 percent of the estimated deposits that has been discovered in the Albertine oil zone.
He further revealed that there had been lengthy debate and negotiations between Uganda and other stakeholders on the amount of tax and other expenses - processes which delayed commencement of the project for years.
For his part, President Magufuli revealed that the oil pipeline project will create more than 15,000 jobs for Tanzanians. Also he expressed optimism that the project’s implementation will open up the region for further trading opportunities - which would, in turn, fast-track socioeconomic development in the region.
The oil pipeline will start in the Buseruka sub-county, Hoima District, to Tanga. Tanzania hosts 1,115km of the pipeline (80 percent) with the remaining 330km being in Uganda.
What the crude oil pipeline means to Tanzania
MY TAKE
Gas revenues to heat the waxy crude oil from Uganda not factored in!
THURSDAY SEPTEMBER 17 2020
In Summary
- The $3.5 billion pipeline will transport crude oil from Hoima in Uganda to Tanga port in Tanzania.
Dar es Salaam. Tanzanian authorities have one month in which to conclude and sign the Host Government Agreement (HGA) with upstream firms involved in the East African Crude Oil Pipeline (EACOP). The country expects billions of dollars from the joint project with Uganda.
The upstream firms include Total, CNOOC and UNOC.
This is what those involved in the HGA in Tanzania have been told, according to EACOP’s National Coordinator in Tanzania, Mr Salum Mnuna.
The $3.5 billion pipeline will transport crude oil from Hoima in Uganda to Tanga port in Tanzania.
The directive to have the HGA signed within a month comes after President John Magufuli and Uganda President Yoweri Museveni met on Monday, September 14 and signed an intergovernmental agreement (IGA) to fast-track the requisite legal and commercial agreements.
It also comes after the signing of an HGA by Uganda.
Completion of the HGA and the existing legal procedures would pave the way for a Final Investment Decision (FID), expected by the end of this year.
The two Presidents agreed that each nation commences negotiations on all pending project issues immediately.
“The directive has been issued after the signing of the IGA this week,” revealed Mr Mnuna.
So far, Tanzania has completed the Environmental and Social Impact Assessment (ESIA) for the project, among other prerequisites.
Referring to the financial gains that Tanzania will get from the pipeline project, Mr Mnuna said the country would earn $1 billion a year (about Sh2.3 trillion) as income tax for the next 25 years.
The revenues will be generated on the start of the pipeline operations, whereby Tanzania will earn 60 percent of the paid tax - with Uganda pocketing 40 percent.
“There will be other financial gains that we will get from the project - apart from tax,” Mr Mnuna revealed.
He also disclosed that the Tanzanian authorities had granted the oil companies a VAT exemption on imported construction equipment like heavy machineries in order to facilitate construction of the pipeline which will have the capacity to transport 216Kbd: that is some 216,000 barrels of oil per day.
He added that contracted Ugandan shippers will pay $12.77 per barrel to EACOP Company for transporting crude oil from the production site to international markets.
As it stands in terms of the share-holding structure for the oil project, the up-streamers include Total Oil (66.7 percent after acquiring Tullow’s 33.3 share) and the China National Offshore Oil Corporation (CNOOC), with 33.3 percent shares. However, the Uganda National Oil Company (UNOC) will soon join the upstream stakeholders, holding 15 percent, Total oil stated.
During the construction phase, the 1,445km-long pipeline will create employment in the form of thousands of jobs throughout the pipeline’s route - and will unlock East Africa’s potential as it will result to over 60 percent increase in Foreign Direct Investments (FDIs) in Uganda and Tanzania.
During his recent visit to Chato in Tanzania, Uganda President Museveni said the project is set to exploit 6.5 billion barrels of oil. This is only 40 percent of the estimated deposits that has been discovered in the Albertine oil zone.
He further revealed that there had been lengthy debate and negotiations between Uganda and other stakeholders on the amount of tax and other expenses - processes which delayed commencement of the project for years.
For his part, President Magufuli revealed that the oil pipeline project will create more than 15,000 jobs for Tanzanians. Also he expressed optimism that the project’s implementation will open up the region for further trading opportunities - which would, in turn, fast-track socioeconomic development in the region.
The oil pipeline will start in the Buseruka sub-county, Hoima District, to Tanga. Tanzania hosts 1,115km of the pipeline (80 percent) with the remaining 330km being in Uganda.
What the crude oil pipeline means to Tanzania
MY TAKE
Gas revenues to heat the waxy crude oil from Uganda not factored in!
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,720
- 107,165
Mgagaa na Upwa
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- Sep 30, 2013
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Dec mbali sana
TEMLO DA VINCA
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Duu hii mikazo atakufa mtu yaani mzee anakaza na vmafuta vichache vnavyopitia bandari flani hivi hahahaha
Geza Ulole
Platinum Member
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OPINION: Kenyans need to cry less over the Uganda-Tanzania pipeline
THURSDAY SEPTEMBER 17 2020
By Charles Onyango-Obbo
Ever since Uganda in April 2016 announced it would build the pipeline to export its crude oil through the Tanzanian seaport of Tanga, rather than Lamu in Kenya, it has been a surprisingly emotive subject in Kenya. In part, it is because the decision was unexpected, as most news reports suggested the pipeline would be built from oil fields of Hoima in western Uganda, through Lokichar in Kenya, and onward to Lamu.
Ever since then, if you look at the long-read think pieces analysis why and the strategic significance of the choice, there are far more appearing in the Kenyan media than in Uganda and Tanzania.
Recently, Uganda President Yoweri Museveni was in Tanzania, and signed a pact to commence construction of the $3.5 billion 1,445 kilometre-long crude oil pipeline. By Tuesday, every Kenyan newspaper worth its salt had put out a full-throated analysis. There was nothing equivalent in Uganda.
There was an evident sense of injury – and even peril – with one commentator saying in one of the analyses that Uganda had stuck a knife in the back of Kenya, its main trading partner in the region. It went conspiratorial, suggesting that somehow Uganda and Tanzania were in cahoots to deny Kenya the pipeline as a way of ending its regional economic dominance. Sometimes, we give our politicians too much credit.
So, what do we know as the official and public reasons for why Uganda chose Tanzania? On the surface, they look quite sensible.
For one, Kampala said the Kenyan route would delay the project, as it lacked roads and was always affected by monsoon winds for up to three months annually.
Secondly: it was harder to secure land in Kenya, since it takes about 24 months to compensate land owners. On the other hand, in Tanzania the government owns all the land, and a presidential signature would get the pipeline all the land it needs without much hassle.
Thirdly: it was cheaper to route it through Tanzania, although the Uganda-Kenya direction, had it materialised, would have been only 55 kilometres longer.
Fourthly: had the pipeline been built to Lamu, it would have been more vulnerable to attacks by Al-Shabaab from Somalia.
It’s important to remember that Uganda was already supposed to be exporting oil by now, but all sorts of issues delayed that. It is 14 years since discovery of the oil was announced in October 2006. It will be interesting to see how much of the latest action is timed to create a “progress” narrative, after many missed deadlines, ahead of the February 2021 election. That said, the pipeline drama is striking in how little regional media appreciate the security mind-set in Uganda that informs decisions like on the pipeline, and the political motivation for the political class.
For example, implicit in the idea that land is more expensive in Kenya, and it would have got bogged down in compensation battles, is a single word: corruption. As happened with the standard gauge railway, politicians and speculators would have bought up the land along the route - and jacked up the cost. However, corruption would be one reason why Kenya would have been chosen, not why it lost. The business and corruption networks between Uganda and Kenya are deep, and have a long history. The Ugandan chapter of the networks would have delivered the pipeline to their compadres in Kenya, so that they eat merrily together. That Tanzania is cheaper, etc., is actually, a disadvantage.
To better get a handle on the decisive calculations, one need only look at the photographs of the weekend in Tanzania. Museveni and his entourage were fully face-masked. President John Magufuli and his part were not, reflecting the strange mix of denialism, mild superstition, and religious fundamentalism that is the Tanzanian government’s Covid-19 policy.
A Ugandan online publication claimed that upon return, the Museveni contingent was quarantined – just in case. At a wider level, it illustrated the Museveni state’s security mind-set, which likely played a role in tipping the oil pipeline decision to Tanzania. These security considerations, were more domestic, than geopolitical. The oil pipeline to Tanzania runs in the western part of Uganda, through regions that are staunchly pro-Museveni. As he heads into the sunset of his rule, there is less political risk to his regime – and therefore the pipeline - in these strongholds, than through the northeastern route to Kenya, which is more politically contested. But even more significant, a central strategic objective of Kampala - just like for other hinterland countries like Rwanda - is to spread the risks on key transport infrastructure.
With Kenya the key ground export and import route for Uganda, and the standard gauge too lined up, Kenya was in the back of the grid.
There is, of course, the understandable seduction to use the failure to snag the pipeline to knock the Jubilee government, but knowing that Ugandan security mindset, the surprise is that the Kenya route was ever seriously considered at all.
https://www.thecitizen.co.tz/oped/K...340-q5oan2/index.html?utm_source=thedextazlab
THURSDAY SEPTEMBER 17 2020
By Charles Onyango-Obbo
Ever since Uganda in April 2016 announced it would build the pipeline to export its crude oil through the Tanzanian seaport of Tanga, rather than Lamu in Kenya, it has been a surprisingly emotive subject in Kenya. In part, it is because the decision was unexpected, as most news reports suggested the pipeline would be built from oil fields of Hoima in western Uganda, through Lokichar in Kenya, and onward to Lamu.
Ever since then, if you look at the long-read think pieces analysis why and the strategic significance of the choice, there are far more appearing in the Kenyan media than in Uganda and Tanzania.
Recently, Uganda President Yoweri Museveni was in Tanzania, and signed a pact to commence construction of the $3.5 billion 1,445 kilometre-long crude oil pipeline. By Tuesday, every Kenyan newspaper worth its salt had put out a full-throated analysis. There was nothing equivalent in Uganda.
There was an evident sense of injury – and even peril – with one commentator saying in one of the analyses that Uganda had stuck a knife in the back of Kenya, its main trading partner in the region. It went conspiratorial, suggesting that somehow Uganda and Tanzania were in cahoots to deny Kenya the pipeline as a way of ending its regional economic dominance. Sometimes, we give our politicians too much credit.
So, what do we know as the official and public reasons for why Uganda chose Tanzania? On the surface, they look quite sensible.
For one, Kampala said the Kenyan route would delay the project, as it lacked roads and was always affected by monsoon winds for up to three months annually.
Secondly: it was harder to secure land in Kenya, since it takes about 24 months to compensate land owners. On the other hand, in Tanzania the government owns all the land, and a presidential signature would get the pipeline all the land it needs without much hassle.
Thirdly: it was cheaper to route it through Tanzania, although the Uganda-Kenya direction, had it materialised, would have been only 55 kilometres longer.
Fourthly: had the pipeline been built to Lamu, it would have been more vulnerable to attacks by Al-Shabaab from Somalia.
It’s important to remember that Uganda was already supposed to be exporting oil by now, but all sorts of issues delayed that. It is 14 years since discovery of the oil was announced in October 2006. It will be interesting to see how much of the latest action is timed to create a “progress” narrative, after many missed deadlines, ahead of the February 2021 election. That said, the pipeline drama is striking in how little regional media appreciate the security mind-set in Uganda that informs decisions like on the pipeline, and the political motivation for the political class.
For example, implicit in the idea that land is more expensive in Kenya, and it would have got bogged down in compensation battles, is a single word: corruption. As happened with the standard gauge railway, politicians and speculators would have bought up the land along the route - and jacked up the cost. However, corruption would be one reason why Kenya would have been chosen, not why it lost. The business and corruption networks between Uganda and Kenya are deep, and have a long history. The Ugandan chapter of the networks would have delivered the pipeline to their compadres in Kenya, so that they eat merrily together. That Tanzania is cheaper, etc., is actually, a disadvantage.
To better get a handle on the decisive calculations, one need only look at the photographs of the weekend in Tanzania. Museveni and his entourage were fully face-masked. President John Magufuli and his part were not, reflecting the strange mix of denialism, mild superstition, and religious fundamentalism that is the Tanzanian government’s Covid-19 policy.
A Ugandan online publication claimed that upon return, the Museveni contingent was quarantined – just in case. At a wider level, it illustrated the Museveni state’s security mind-set, which likely played a role in tipping the oil pipeline decision to Tanzania. These security considerations, were more domestic, than geopolitical. The oil pipeline to Tanzania runs in the western part of Uganda, through regions that are staunchly pro-Museveni. As he heads into the sunset of his rule, there is less political risk to his regime – and therefore the pipeline - in these strongholds, than through the northeastern route to Kenya, which is more politically contested. But even more significant, a central strategic objective of Kampala - just like for other hinterland countries like Rwanda - is to spread the risks on key transport infrastructure.
With Kenya the key ground export and import route for Uganda, and the standard gauge too lined up, Kenya was in the back of the grid.
There is, of course, the understandable seduction to use the failure to snag the pipeline to knock the Jubilee government, but knowing that Ugandan security mindset, the surprise is that the Kenya route was ever seriously considered at all.
https://www.thecitizen.co.tz/oped/K...340-q5oan2/index.html?utm_source=thedextazlab
Lusematic
JF-Expert Member
- Feb 2, 2017
- 12,051
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[emoji3][emoji3][emoji3][emoji3] hii ni balaaa tunanyoosha watu......
lazima tuujenge uchumi wa ndani kisha wa nnje
The best 007
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- Oct 6, 2019
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Tunakata mirija yote [emoji3][emoji3][emoji3]
Geza Ulole
Platinum Member
- Oct 31, 2009
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halafu wajinga wengine wamejenga tembo mweupe Kisumu sasa wanaomba kusafirisha mafuta eti kwenda Musoma!
Watangoja milele!
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,720
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ndughuri msuya
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- Feb 29, 2012
- 2,146
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Wameunganisha railway, port na pipeline Mimi naona kama ni mbinu za kukabiliana na central corridor baada ya kuona shehena ya mizigo ina hamia Dar.This is what Uhuru is doing at Lamu port
Wadhungu husema "to place a cart before a donkey"!
Mkiambiwa mliweka rehani Mombasa port kujenga SGR mnakataa shenzy type saahii mnaunganisha operations za port na railway ready for a takeover by the "Chinese"!
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,720
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Aawapii wame-default mara mbili kulipa deni la SGR sasa kilichobaki ni ku-raise fedha kwa kuunganisha na operation za Mombasa baada ya Uganda kukataa kuchukua mizigo Naivasha Inland Dry Port! na believe me itaongeza Port charges! na haitasaidia kufanya Mombasa port competitive enough! get to know Kunyaland my friend haitawasaidia! pretty soon ile kampuni ya Mchina ya SGR ya Africa Star Railway Operation Company (Afristar) itaanza kukusanya kodi Mombasa port!
SGR reveals Sh21bn loss as China firm debt rises
toptorn
JF-Expert Member
- Jan 6, 2019
- 1,224
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Hapa wamenifurahisha sana 👏👏👏👏👏👏👏👏👏👏👏👏
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