Tanzania-Uganda oil deal: What's in it for Uganda?
Fifteen years after discovering commercially-viable crude oil deposits, Uganda begins its final journey to production with the signing on of a landmark deal with Tanzania and French oil company Total. The deal, which is expected to unlock upwards of $15 billion in investments, was signed in Kampala yesterday. Elison Karuhanga, Partner with KAA Advocates joins CNBC Africa for more.
Mon, 12 Apr 2021 14:44:21 GMT
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AI Generated Summary
- The deal involves the construction of the East African Crude Oil Pipeline (EACOP), which is set to become the world's longest heated crude oil pipeline.
- The ownership of the pipeline will be shared among the governments of Tanzania and Uganda, as well as major oil corporations like Total and Sinoc.
- The agreement is expected to unlock investments of up to $15 billion and marks a significant milestone in Uganda's journey towards oil production.
Uganda and Tanzania have recently signed a groundbreaking deal that is set to revolutionize the oil industry in the region. The deal, which involves the construction of the East African Crude Oil Pipeline (EACOP), is expected to unlock investments of up to $15 billion. The EACOP, stretching from Hoima in Uganda to Tanga in Tanzania, is touted to become the world's longest heated crude oil pipeline. The ownership of the pipeline will be shared among the governments of Tanzania and Uganda, as well as major oil corporations like Total and Sinoc. This historic agreement underscores a significant milestone in Uganda's journey towards oil production after the discovery of commercially viable crude oil deposits approximately 15 years ago. The signing ceremony, which took place in Kampala, marks a pivotal moment for the region. Elison Karuhanga, Partner at KAA Advocates, shared insights on the implications of this deal in an interview with CNBC Africa. The key points from the interview highlight the massive investments expected, the potential benefits for both Uganda and Tanzania, and the projected timeline for returns on investment.
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