FULL DETAIL: Inside the Uganda, Tanzania signed oil pipeline agreement

Presidents Yoweri Museveni and Samia Hassan Suluhu of Tanzania on Sunday April 11, signed a pact that will see the construction of the East Africa Crude Oil Pipeline get in motion.

The agreement was signed at State House, Entebbe on Sunday together with Total E&P and China National Offshore Oil Corporation (CNOOC).

In the agreement, Total owns about 70% shares in the pipeline project, CNOOC has 8% and Tanzania has 5%. The rest of the shares are owned by Uganda.

The EACOP is a 1,443km crude oil export pipeline that will transport Uganda’s crude oil from Hoima in Uganda to the Chongoleani peninsula near Tanga port in Tanzania.

The construction of the pipeline is expected to cost at least $3.5b.

Uganda has so far discovered over 6.5 billion barrels of oil.

Below is the joint Communique signed by the two heads of state.

JOINT COMMUNIQUE BETWEEN THE PRESIDENT OF THE REPUBLIC OF UGANDA AND THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA ON THE IMPLEMENTATION OF THE EAST AFRICAN CRUDE OIL PIPELINE (EACOP) PROJECT ON THE 11TH APRIL, 2021 AT THE STATE HOUSE ENTEBBE, UGANDA 

NOTING that on 31st March, 2021, His Excellency Yoweri Kaguta Museveni, President of the Republic of Uganda invited Her Excellency Samia Suluhu Hassan, President of the United Republic of Tanzania to attend and witness the signing ceremony of the Host Government Agreement between the Government of the Republic of Uganda and the EACOP Company on 11th April 2021 at State House, Entebbe Uganda; 

NOTING that the two Heads of State held bilateral talks on a wide range of issues of mutual interest and expressed their satisfaction with the excellent relations and cooperation that so happily exist between the two countries and further reiterated the commitment to deepen cooperation in various areas including trade, infrastructure, transport and social affairs; 

FURTHER NOTING that the Heads of State observed a minute of silence on the passing on of the late President, His Excellency Dr. John Pombe Joseph Magufuli, the Fifth President of the United Republic of Tanzania. In this regard, the two Presidents cherished the immense contribution of the late President Magufuli in working towards the cause of the East African Community; fostering and nurturing bilateral relations and cooperation between the two countries and in providing an unequivocal support and 2 commitment to the realization and implementation of the strategic East African Crude Oil Pipeline (EACOP) Project; 

UNDERSTANDING that on 26th May 2017 the Governments of the Republic of Uganda and the United Republic of Tanzania signed the Intergovernmental Agreement (IGA) on the implementation of the East African Crude Oil Pipeline (EACOP) Project; 

RECALLING the commitments made by His Excellency the late Dr. John Pombe Joseph Magufuli, the Fifth President of the United Republic of Tanzania and His Excellency Yoweri Kaguta Museveni, President of the Republic of Uganda during their meeting at Chato, Geita Tanzania on 13th September 2020, that; each State Party to conclude the Host Government Agreement with EACOP Project Company; commence negotiations of all pending Project Agreements with immediate effect and expedite the implementation of the EACOP Project; 

ACKNOWLEDGING the progress made in negotiation and finalization of the Host Government Agreement between the United Republic of Tanzania and the EACOP Company and commending the signing of the Host Government Agreement between the Government of the Republic of Uganda and the EACOP Company on 11th April 2021 and further noting that all outstanding issues related to the EACOP Project have been amicably resolved; 

AND ALSO RECOGNIZING that the Shareholding Agreement (SHA) has also been signed by all the stakeholders on 11th April, 2021; 

REITERATING their commitment and realisation of the EACOP Project for the benefit of the People of the Republic of Uganda and the United Republic of Tanzania in the spirit of East African Cooperation; and

NOW THEREFORE, the two Heads of State agree and direct as follows:

1. That each State Party takes all necessary steps required for the implementation of the EACOP Project; 

2. That having concluded the Tariff and Transportation Agreement (TTA) and the Host Government Agreement for the Republic of Uganda and the Shareholding Agreement (SHA) for Shareholders to the EACOP Company, the companies can now launch the EACOP Project and award the main Engineering, Procurement and Construction Contracts (EPC); 

3. That the United Republic of Tanzania to finalise the signing of the Host Government Agreement and related agreements between the Government and EACOP Company. 

Done at Entebbe, Uganda on this 11th day of April, 2021.

H.E. Yoweri Kaguta Museveni, President of the Republic of Uganda
H.E. Samia Suluhu Hassan, President of the United Republic of Tanzania