The governments of Tanzania and Uganda have signed a framework agreement governing the construction of a $3.55 bn,1445-km, 24 inch diameter crude oil pipeline from landlocked Uganda to the blue water Tanzanian port of Tanga.
The pipeline would transport to market recoverable Ugandan reserves estimated between 1.4 - 1.7 bn barrels.
French Oil giant Total has agreed to cover the costs of pipeline construction. The agreement covers terms on tax incentives for the project, implementation timelines, the size of the pipeline and local content levels, keeping it on track for completion in 2020.
Adewale Fayemi, the manager for Uganda at Total, said the project will become “the longest electrically heated crude oil pipeline in the world,” a heated line being necessary to keep the viscous Ugandan oil liquid enough to flow through the pipeline.