Uganda, Tanzania meet to finalise pipeline deal

Geza Ulole

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Uganda, Tanzania meet to finalise pipeline deal
SATURDAY JANUARY 19 2019





Oil pipeline. Uganda and Tanzania signed an agreement in May 2017 to jointly develop the $3.5 billion pipeline that has been described as the longest electrically heated crude oil pipeline in the world. FOTOSEARCH

In Summary
  • The execution of the 1,445km stretch of underground crude oil pipeline from Hoima in Uganda to Tanga in Tanzania has been in limbo since its inauguration, which has caused concern among stakeholders.
  • The financial model seems to be one of the major setbacks.
  • Upon completion, it will be the longest crude oil pipeline in the world.


By EMMANUEL ONYANGO
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Officials from Uganda and Tanzania plan to meet this week to finalise on the joint pipeline project from Hoima to Tanga.

Since the project’s inauguration in August 2017, there have been a series of technical meetings between the government of the two countries, but analysts say they have not covered much ground.

Now, the National Project Co-ordinator for Tanzania from the Ministry of Energy, Salum Mnuna, hopes the five-day ministerial meeting — starting on January 21 — will finalise how to operate, execute and supervise the project given the different laws in the two countries.

Other pending issues are the registration of companies to be involved in the project, distribution of revenue, issues related to defence and security for both countries, and citizen participation in the implementation of the project.

The execution of the 1,445km stretch of underground crude oil pipeline from Hoima in Uganda to Tanga in Tanzania has been in limbo since its inauguration, which has caused concern among stakeholders.

During a ministerial meeting held in Dar es Salaam, Uganda’s Minister for Energy and Mineral Development, Irene Muloni, said, “Nothing is in place yet despite both countries having finished their feasibility studies.”

According to Ms Muloni, the financial model seems to be one of the major reasons the assigned companies have not yet made the final investment decision. This is setting back the goal of transporting oil by 2020.

The three companies involved in the project are Total Oil of France, China National Offshore Oil Corporation and Tullow Oil of the UK. If the project started as scheduled then it would have been complete by 2020.

The project referred to as the Uganda- Tanzania Crude Oil Pipeline is also known as the East African Crude Oil Pipeline, and is expected to cost $4 billion.

The pipeline is expected to have the capacity to transport 216,000 barrels of crude oil every day. It will be 24 inches in diameter, and Uganda will pay Tanzania $12.20 for every barrel of oil that flows through the pipeline.

Upon completion, it will be the longest crude oil pipeline in the world. It will also be constructed in a way that enables it to heat the crude oil.

Uganda, Tanzania meet to finalise pipeline deal
 
Mr. MTUI

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Mr. MTUI

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Bado tu wanafinalize..
 
Mkikuyu- Akili timamu

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Mkikuyu- Akili timamu

Mkikuyu- Akili timamu

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$12.2 per barrel X 6bn barrels = $72bn
Hapa jameni Magufuli alimfinyilia museveni sana.. Nikama Tz ipo sasa na Mafuta ghafi
Tukumbuke kenya 700mn barrel x best price $100 dollar per barrel = $70bn
Yaani Tz ambayo haina mafuta itapata pesa nyingi kwa mradi huu kuliko kenya ambayo ina mafuta.. JPM ni chizi fulani hivi
 
mwaswast

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mwaswast

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Thought they finalised the last time you posted this same sh#t more than thrice.
 
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Depay

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They will still meet in 2070 to finalize it again and again.......Pretty much a project in the dorldrums
 
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french

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$12.2 per barrel X 6bn barrels = $72bn
Hapa jameni Magufuli alimfinyilia museveni sana.. Nikama Tz ipo sasa na Mafuta ghafi
Tukumbuke kenya 700mn barrel x best price $100 dollar per barrel = $70bn
Yaani Tz ambayo haina mafuta itapata pesa nyingi kwa mradi huu kuliko kenya ambayo ina mafuta.. JPM ni chizi fulani hivi
Hahah. Kenya will never sell its oil at $100/barrel. Remember our crude is waxy so it has to be sold atvpremium. Tz itapata pesa nying kuliko kenya japo kenya in mafuta

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NairobiWalker

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Yaani kitu imezinduliwa mara mia na bado kinafanyiwa deal finalization? 😂😂😂
 
Magonjwa Mtambuka

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They will still meet in 2070 to finalize it again and again.......Pretty much a project in the dorldrums
Maneno yakiwivu kiwivu wa kinyang'au nyang'au.
 
NairobiWalker

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NairobiWalker

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A project of $4 bn unategemea decision ifanyike in 2 days. Shame on you. Wakenya watalia sana kwa JPM.

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Ninavyojua Mimi, uzinduzi huchukua siku moja tu. Kama uzinduzi utachukua miaka mitatu na- sasa ujenzi utachukua century ngapi? 😂😂😂😂
 
Geza Ulole

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$12.2 per barrel X 6bn barrels = $72bn
Hapa jameni Magufuli alimfinyilia museveni sana.. Nikama Tz ipo sasa na Mafuta ghafi
Tukumbuke kenya 700mn barrel x best price $100 dollar per barrel = $70bn
Yaani Tz ambayo haina mafuta itapata pesa nyingi kwa mradi huu kuliko kenya ambayo ina mafuta.. JPM ni chizi fulani hivi
Aisee kumbuka Kenyan oil kuna shareholders kwenye mradi wao yaani Tullow n Total! So the most they can get is a thiRd of that $70bln!
 
NairobiWalker

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NairobiWalker

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Unachojua wewe ndio hivyo lakini kiuhalisia sio hovyo. FID ndio itakufanya uanze kijenga bomba. Hivyo FID ndio inasubiriwa

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Itasubiriwa hadi mwaka gani maana akina Geza Ulole wametuhutubia humu sii haba jinsi project zenu zinavyokua na ready funding kabla kuzinduliwa?
 

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