Kampala — Uganda and Tanzania signed a framework agreement on their proposed $3.55bn crude export pipeline on Friday, a key milestone for the project, which is expected to start pumping Ugandan oil to international markets in three years. An official at Uganda’s Ministry of Energy told Reuters the agreement covered terms on tax incentives for the project, implementation timelines, the size of the pipeline and local content levels, keeping it on track to be completed in 2020. Adewale Fayemi, the manager for Uganda at Total, told Reuters the project will become "the longest electrically heated crude oil pipeline in the world. It’s a record", adding it will increase the flow of foreign direct investment and open a new phase of economic development in the region when completed. The 1,445km-long, 61cm-diameter pipeline will be heated so it can keep highly viscous crude oil liquid enough to flow. It will begin in land-locked Uganda’s western region, where crude reserves were discovered in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.