HE. Yoweri Kaguta Museveni with HE. John Pombe Magufuli signing an agreement in Chato, Tanzania
His Excellency Yoweri Kaguta Museveni of Uganda held a meeting with President John Pombe Magufuli in Chato, Tanzania, where the two heads of states discussed a number of issues of bilateral interest to the two partner countries.
Most importantly, this was a follow-up meeting after Uganda had signed the Host Government Agreement recently with Total on the East Africa Crude Oil Pipeline (EACOP) project. Total is a major shareholder in Uganda’s oil fields.
In principle, the two governments agreed to expedite the harmonization of pending issues in the spirit of the East African Community (EAC), the remaining agreements are to be fast-tracked including the Tanzanian HGA to fasten the implementation of EACOP project.
The $3.5bn project will connect Uganda’s oil fields to port Tanga of Tanzania on the Indian Ocean for about 1,445 km (898 miles) and this will become East Africa’s first major oil pipeline. Total is leading the plans along with China’s CNOOC.
Even though more of Uganda’s oil reserves were discovered much earlier in 2006 the production has been delayed partly by a lack of infrastructure including a refinery, exportation pipeline and building of local capacity.
Speaking to Reuters correspondent, the government spokesman of Tanzania Mr Hassan Abassi said the project is expected to create more than 18,000 jobs for Tanzanians.