Business

A Sneak Peek into the Signed Oil Pipeline Agreement

Tanzanian Minister for Constitutional and Legal Affairs Prof. Palamagamba John Magadi and Irene Muloni, Uganda's Minister of Energy and Mineral Development sign the pipeline agreement on Friday morning

Uganda will by 2020 be able to earn from its crude oil following the signing of the inter-governmental agreement for crude oil pipeline between the government of Uganda and government of Tanzania.

While signing the agreement with Tanzanian Minister of Constitutional and Legal Affairs Prof. Palamagamba John Magadi, for sale Irene Muloni, tadalafil the Minister of Energy and Mineral Development, physician emphasized that all preparations were set for the production and exportation  of oil and that if all goes according to plan, Uganda will make its first export earnings by 2020.

“As soon as the pipeline is done, we will immediately start production and exportation and will be able to earn from the natural resource that God has blessed us with,” said Muloni.

“Once production begins, we are hopeful that the economic situation of Uganda will become better as the money will be invested in other sectors,” she added.

Muloni called upon all the partners involved to work tirelessly to make sure that the 2020 target becomes a possibility so that two nations and the investors can benefit from the oil.

Uganda, during the 2016 bilateral negotiations decided to use the Hoima –Tanga route that goes through Tanzania for transporting its oil from Uganda to the East African coast; because it was cheaper (at an estimated US$12.2 per barrel) and the Tanzanian government promised fiscal incentives.

The 1445km crude oil pipeline is estimated to carry $3.55billion worth oil barrels per day

In his remarks, Prof. Palamagaba said the signed deal was a landmark towards East African integration and that his government is hopeful that once the oil pipeline is constructed, the people of Tanzania will benefit through creation of jobs, new infrastructures and investments.

He asked the government of Uganda to continue honoring its part of the deal.

“This is a great day for the two nations and east Africa at large. We hope that the 2020 target is met by the government of Uganda so that we are able to move forward.”

“We offered incentives to the government of Uganda so that this pipe goes through Tanzania because we are very sure the construction will profit the people of Tanzania in many ways.”

Comments

Header advertisement
To Top