Dr Magufuli wants to fast track Uganda oil pipeline

Construction of the 1,120-kilometre Tanga–Uganda oil pipeline, which was initially scheduled to begin in August this year, is now likely to kick off earlier after Total East Africa—one of the three contractors—assured President John Magufuli of availability of funds for the project.

 

Total East Africa vice president Javier Rielo gave the assurance yesterday after President Magufuli asked for the project to be speeded up and its duration reduced to just three years so its benefits can be enjoyed sooner.

 

Rielo said around $4 billion had already been set aside for the project which will link oil fields in Uganda’s Lake Albert to Tanga port in Tanzania and is expected to create up to 1,500 direct and 20,000 indirect jobs.

 

An official in the Ministry of Energy and Minerals said the geographical standing and weather conditions of the Tanga port provided a conducive environment for the project’s implementation.

 

Early this month, the state-run Tanzania Petroleum Development Corporation (TPDC) said the pipeline’s construction was scheduled to begin in August this year and be completed within three years. 

TPDC executive director James Mataragio said the project will be carried out by three international oil firms –Tullow Oil plc (Britain), Total E&P (France), and Cnooc (China). 

 

“We are working round the clock to enable the project to commence and proceed according to schedule,” Mataragio said.

 

The pipeline will wind its way from Tanga to Uganda through Singida and Kagera regions, and upon completion will be able to transport up to 200,000 barrels of oil per day, according to the project blueprint.

 

So far the investors are working on the best deal to transport to Tanga an estimated 6.5 billion barrels of oil believed to be accessible in Lake Albert. Already 1.4 -1.7 billion barrels have been confirmed as recoverable and available for transportation. 

The project is expected to increase Foreign Direct Investment (FDI) to Tanzania by more than 50 per cent per annum.