The 1,445KM pipeline will transport crude oil from Uganda’s oil fields in Hoima, to the Port of Tanga on the Indian Ocean.
“In principle, we agreed that our governments expedite the harmonization of pending issues in the spirit of the East African Community (EAC), the remaining agreements be fast-tracked including the Tanzanian host government agreement (HGA) and we quickly carry out the implementation of EACOP project,” said President Museveni.
Magufuli said, “This pipeline project is another great liberation for us. After the victory over Idi Amin in Kagera, this pipeline project is a second victory for Uganda and Tanzania.”
It is the first meeting between two East African leaders since the COVID-19 pandemic started. President Museveni wore a mask, while Magufuli was mask-less.
The signing comes two days after the Uganda government and the French oil giant Total E&P reached a major milestone that paved the way for a Final Investment Decision on the production of Uganda’s oil.
This followed a meeting between President Museveni and Patrick Pouyanné, Chairman and CEO of Total. The meeting was held at State House, Entebbe.
The agreement on the pipeline construction comes days after French oil company Total TOTF.PA said it had reached an agreement with Uganda protecting its rights and obligations in the pipeline’s construction and operation – known as the host government agreement.
Mr Museveni said he was ready to give Tanzania 80 percent of the profits due to the fact that the largest part of the pipeline was in the country but, according to him, Dr Magufuli settled on 60 percent.