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September 26, 2023
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Parliament questions oil decision betwen Uganda, Tanzania and oil companies

Parliament has questioned some of the sections of the three agreements that formed the Final Investment Decision signed between Uganda, the United republic of Tanzania and oil companies; CCNOC and Total. This was during the tabling of these agreements before parliament by the minister of Energy and minerals Maria Gorret Kituttu.  

In April, Uganda, Tanzania and the oil companies signed the tripartite agreement for the construction of the east African crude oil pipeline which will traverse 1440 km from the Albertine region to Tanga Port in Tanzania.

The minister of energy and mineral development Mary Goretti Kituttu has tabled the three agreements before parliament.

The agreements include the host government agreement, the Tariff and Transportation Agreement and the Shareholders’ Agreement. It was during this session that some of the legislators raised concerns about some of the sections in the agreement.

In these agreements Uganda will hold 15% shares in the EACOP. Tanzania is meanwhile free to reduce its shares from 15% to 5% within 30 days following signing of agreement.

The legislators demanded Ugandans should reap in terms of provision of employment, procurement and other benefits that come with a huge project instead of the government looking on as other partners take home more.

The $15bn project is expected to take four years before completion. Kitutu urged Ugandans to exploit the opportunities provided by the oncoming projects.

The east African crude oil pipeline if completed could be the longest electrically heated crude oil pipeline.

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