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                Value Addition: Uganda to reap more from Busia border grain trade

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                          Government of Uganda and Total sign key oil pipeline agreement in Entebbe

                          Graha Admin by Graha Admin
                          September 12, 2020
                          in Business, Politics, Science & Technology
                          Government of Uganda and Total sign key oil pipeline agreement in Entebbe
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                          Photo credit: PPU

                          Government of Uganda and Total have signed the Host Government Agreement (HGA) for the East Africa Crude Oil Pipeline (EACOP) project.

                          The Uganda Government and Total also agreed on the following agreements in relation to the Uganda National Oil Company:

                          1. The Deed of Assignment in Relation to the Block 1, 2 and 3A Production Sharing Agreements

                          2. The Deed of Novation and Amendment with the Uganda National Oil Company in relation to the Joint Operating Agreement in respect of Exploration Areas 1, 2 and 3A

                          The event was presided over by President Museveni and witnessed by Mr Patrick Pouyanne, the Chairman and Chief Executive Officer of Total. The Minister of Energy and Mineral Development, Mary-Goretti Kitutu, signed on behalf of Uganda while Nicolas Terraz, the Total Exploration and Production President for Africa, signed on behalf of his employer also present was the Attorney General, Mr. William Byaruhanga.

                          Government of Uganda and the oil companies represented by Total reached an agreement on the commercial framework for the Lake Albert Development Project which also represents significant progress towards achieving the Final Investment Decision expected by the end of the year 2020.

                          “Oil will be used to further develop the country’s other important sectors like infrastructure and ICT, education and health to enhance capacity of our country,” President Museveni said.

                          Total and other companies licenced to operate in the country are taking bold steps to quickly commence the production of petroleum after a long time in preparation stages.

                          The President reassured Total of the Government’s support during their work, he pointed out other potential areas like Agriculture, Tourism, Services, and Human Resource that the companies should explore.

                          The President promised to get in touch with his Tanzanian counterpart, HE. John Pombe Magufuli, to resolve other pending issues, especially the Host Government Agreement in Tanzania.

                          Minister Kitutu said, once the final investment decision is made by the oil companies, the opportunities for investment in the country will grow exponentially giving a boost to the economy. She also urged local companies to take advantage of the agreement to tap into opportunities in the oil sector.

                          CEO Pouyanne (Total) commended President Museveni for his leadership and promised that the project would be executed successfully.

                          Previously, President Museveni and Mr Pouyanne held a series of high-level discussions to address the commercial bottlenecks in the achievement of a Final Investment Decision (FID) for Uganda’s upstream and EACOP projects.

                          The oil pipeline will start in Buseruka sub-county, Hoima District, and run for 1,445km to the Tanzania port city of Tanga. When complete, it will be the world’s longest heated oil pipeline.

                          Tags: BuserukaEast Africa Crude Oil Pipeline (EACOP) projectFinal Investment Decision (FID)Government of UgandaH.E Yoweri Kaguta MuseveniHE. John Pombe MagufuliHoima DistrictMary-Goretti KitutuMinistry of Energy and Mineral Development UgandaNicolas TerrazOilOil pipelinePatrick PouyannePetroleum Authority of UgandaTanga portTanzaniaToTalUganda National Oil Company
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