The government of Uganda has confirmed that the government of Tanzania will sign the host government agreement on oil and gas next week after reaching an understanding regarding shareholding and other related issues. This will pave the way towards the construction of the East African crude oil pipeline valued at 3.5 billion dollars.
The minister for energy and mineral development Maria Goretti Kitutu accompanied by the two shareholding companies in Uganda’s Oil and Gas Total E&P and CNOOC as well as the Uganda National Oil Company and the Petroleum Authority of Uganda met in Kampala to come up with a way forward for the sector.
Robert Kasande the permanent secretary at the ministry of energy and mineral development later told the media that on Sunday, the Tanzanian delegation did not sign the host government agreement.
“The outstanding at that time was how much Tanzania was to have in that agreement and we communicated today, that is 15 per cent,” he said.
It was also revealed that building of the East African Crude Oil Pipeline would start from Tanzania – and not Uganda.
Maria Goretti Kitutu said all stakeholders were committed to ensuring the success of the various projects following the signing of the Financial Investment Decision.
Compensation of the Project Affected Persons is one of the sticky issues. The various stakeholders allayed all fears.
Available data indicates 57% of workers in the next phase will be Ugandans bringing in at least $48.5 million annually. Ugandans will also provide goods and services valued at $15 billion.
