Uganda to pay more for use of crude oil pipeline
The landlocked country discovered vast oil reserves ten years ago and has agreed to a higher tariff demanded by owners of planned pipeline through Tanzania
Kampala — Uganda said on Wednesday it had agreed to pay a higher tariff to use a pipeline planned to run through neighbouring Tanzania, boosting the prospects of a project vital for Uganda’s nascent petroleum industry. Landlocked Uganda in 2016 picked a route for a pipeline through Tanzania to the Indian Ocean port of Tanga to help export its crude. At a length of 1,445km, the project will cost $3.5bn and has been described as the world’s longest electrically-heated pipeline. Initially, Uganda said it had agreed with investors and Tanzania that it would pay a tariff of $12.20 for each barrel of crude shipped through the pipeline. But the investors, which include France’s Total, later demanded a higher tariff, according to Ugandan officials, stalling negotiations over the project. The government has agreed to increase the tariff to $12.77 per barrel after further talks with the investors, energy minister Irene Muloni said on Wednesday. Total, China’s CNOOC, and Britain’s Tullow Oil...
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