Complicating the proposed Uganda - Kenya Crude Oil Pipeline (UKCOP), the governments of Uganda and Tanzania have signed an agreement to study building a pipeline from the oil fields near Hoima, Uganda to the Tanzanian port of Tanga.

Dr Fred Kabagambe-Kaliisa, Permanent Secretary of Uganda’s Ministry of Energy and Mineral Development, said the deal will help the parties to appraise the merits of a crude export pipeline option through Tanzania with a view to achieving the lowest unit transportation cost for crude oil from Uganda.

Uganda has been looking at various options of developing the crude oil export pipeline, which include Hoima-Lacor-Lamu Port and Hoima-Nairobi-Mombasa in Kenya and now Hoima-Tanga.

“The objective is to select a route that will result in the lowest unit transportation cost and constitutes the most viable option for the pipeline project,” Kabagambe-Kaliisa added.

Oil companies in Uganda have been in discussions with Tanzania for an alternative pipeline route through Tanga despite the recent agreement between Presidents Yoweri Museveni and Uhuru Kenyatta to build one from Hoima to the Kenyan coast.