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East African Crude Oil Pipeline

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Uganda–Tanzania Crude Oil Pipeline
Map of Uganda–Tanzania Crude Oil Pipeline
Location
CountryUganda & Tanzania
Coordinates01°15′54″S 31°40′33″E / 1.26500°S 31.67583°E / -1.26500; 31.67583
General directionWest to east
FromHoima, Uganda
Passes throughBukoba, Tanzania
ToTanga, Tanzania
General information
TypeOil pipeline
PartnersTotal SA
Commissioned2020 (Expected)[1][2]
Technical information
Length876 mi (1,410 km)

The Uganda–Tanzania Crude Oil Pipeline (UTCOP) is a proposed pipeline to transport crude oil from Uganda's oil fields to Tanga, Tanzania, a port on the Indian Ocean.[3]

Location

The oil pipeline would start in Buseruka sub-county, Hoima District, in Uganda's Western Region. It would travel in a general southeasterly direction to pass through Masaka in Uganda, Bukoba in Tanzania, loop around the southern shores of Lake Victoria, continue through Shinyanga and Siginda, to end in Tanga,[4] a distance of approximately 1,410 kilometres (880 mi).[5]

Background

Uganda has proven oil reserves in excess of 6.5 billion barrels, of which about 2.2 billion barrels are recoverable.[6] The country plans to build a refinery in the Western Region to process what is needed locally and regionally, with the rest exported via pipeline to the Indian Ocean coast.[7]

Uganda previously agreed to build a joint Uganda–Kenya Crude Oil Pipeline to the Kenyan port of Lamu.[8][9]

Concerns regarding security and cost, however, motivated parallel negotiations with Tanzania regarding a shorter and safer route to Port Tanga, with the support of the French petroleum conglomerate Total SA.[10][11]

At the 13th Northern Corridor Heads of State Summit in Kampala in April 2016, Uganda officially announced its choice for the Tanzania route for it crude oil, in preference to the Mombasa or Lamu routes in Kenya. At that summit, the presidents of both Kenya and Rwanda were present, along with representatives from Ethiopia, South Sudan, and Tanzania.[12][13] At the same summit, President Uhuru Kenyatta announced that Kenya would build the Kenya Crude Oil Pipeline on its own, thereby abandoning the Uganda–Kenya Crude Oil Pipeline.[14][15]

Cost, funding, and timetable

It is expected that construction will start in August 2016 and last three years at a budgeted cost of US$4 billion, offering approximately 15,000 construction jobs and between 1,000 and 2,000 permanent jobs.[16] In March 2016, the Daily Monitor newspaper reported that Total E&P is prepared to spend US$4 billion (UGX:13 trillion) to fund construction of this pipeline.[5]

Oil Refinery

An oil refinery is also planned to be constructed in western Uganda to process the oil for exports within the East African Community. The $2.5 billion project is to be developed under a public-private partnership, with 60% of the stake with the private developer. The remaining 40% shares would be distributed among the East African States.[17] On 30 April 2016, Tanzania agreed to buy 8% of the shares in the refinery for $150.4 million.[18]

See also

References

  1. ^ AP (26 April 2016). "Uganda: Hope for oil production by 2018 after pipeline deal". Daily Mail Quoting Associated Press (AP). New York City. Retrieved 27 April 2016.
  2. ^ Muhumuza, Rodney (26 April 2016). "Uganda: Agreement to build oil pipeline through Tanzania boosts hopes for production of crude by 2018". US News Quoting Associated Press. New York City. Retrieved 27 April 2016.
  3. ^ Elias Biryabarema, and Fumbuka Ng'wanakilala (2 March 2016). "Uganda, Tanzania plan oil pipeline". Reuters.com. Retrieved 3 March 2016.
  4. ^ Musisi, Frederic (7 March 2016). "Oil pipeline: Which way for Uganda?". Daily Monitor. Kampala. Retrieved 7 March 2016.
  5. ^ a b Musisi, Frederic (16 March 2016). "Total readies UShs13 trillion for oil pipeline development". Daily Monitor. Kampala. Retrieved 16 March 2016.
  6. ^ Patey, Luke (October 2015). "Oil in Uganda: Hard bargaining and complex politics in East Africa" (PDF). Oxford: Oxford Institute for Energy Studies. Retrieved 28 April 2016.
  7. ^ Ouga, Samuel (14 August 2013). "Uganda's Oil Refinery – An Opportunity for transformation". New Vision. Kampala. Retrieved 3 March 2016.
  8. ^ Biryabarema, Elias (25 June 2013). "Uganda agrees to plan for oil pipeline to new Kenya port". Reuters.com. Retrieved 28 April 2016.
  9. ^ Bariyo, Nicholas (25 June 2013). "Uganda, Kenya Agree to Construct Crude export Pipeline to Port Lamu". Wall Street Journal Quoting Dow Jones Newswires. New York City. Retrieved 28 April 2016.
  10. ^ Allan Olingo, and James Anyanzwa (17 October 2015). "Regional power play in tussle over new route of Uganda oil pipeline". The EastAfrican. Nairobi. Retrieved 3 March 2016.
  11. ^ Abdalah, Halima (13 September 2015). "Oil firms prefer Tanga pipeline route to Lamu". The EastAfrican. Nairobi. Retrieved 3 March 2016.
  12. ^ Musisi, Frederic (23 April 2016). "Uganda chooses Tanga route for oil pipeline". Daily Monitor. Kampala. Retrieved 23 April 2016.
  13. ^ Musisi, Frederick (26 April 2016). "Transporting oil to Tanzania to cost UShs40,000 per barrel". Daily Monitor. Kampala. Retrieved 26 April 2016.
  14. ^ PSCU (23 April 2016). "Kenya will build own pipeline, Uhuru tells EAC summit". Daily Nation. Nairobi. Retrieved 26 April 2016.
  15. ^ Ligami, Christabel (16 April 2016). "As Uganda chooses Tanzania pipeline route, Kenya to go it alone". African Review. Nairobi. Retrieved 26 April 2016.
  16. ^ Mwakyusa, Alvar (8 March 2016). "East Africa: Construction of Uganda - Tanga Port Oil Pipeline Starts August". Tanzania Daily News via AllAfrica.com. Dar es Salaam. Retrieved 8 March 2016.
  17. ^ Reuters. "Tanzania offers to buy stake in Uganda's oil refinery". Standard Digital News. Retrieved 2016-04-30. {{cite web}}: |last= has generic name (help)
  18. ^ "TZ to spend Sh300bn on buying stake in Uganda refinery". www.thecitizen.co.tz. Retrieved 2016-04-30.
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