China National Offshore Oil Corporation’s (CNOOC), Vice President, Li Yong , said that CNOOC and France’s Total are in final talks over the construction of Uganda’s oil pipeline that will run up to the Tanzanian seaport of Tanga, China Daily Reported.
Yong met with Uganda’s President, Yoweri Museveni, in late October to confirm the company’s readiness to undertake to $4b pipeline project, according to Ecofin Agency.
This comes as leaders from the East African Community (EAC) agreed in April that an oil pipeline be built to link oil wells in western Uganda and the east African coastline through Tanzania. EAC is an economic bloc that brings together Uganda, Rwanda, Tanzania, Kenya, Burundi and South Sudan.
In early September, Egypt Oil&Gas reported that a Paris based team of oil experts discussed new developments regarding the construction of a 1,410km-long East Africa crude pipeline to transport Ugandan oil from its city of Hoima through Tanzania, where 1,100km of the pipeline will run, to the Indian Ocean for export. The project was worth $4b and the initial estimated capacity was to reach 200,000b/d.