French oil company, Total SA, and the Ugandan government have managed to navigate previous issues, giving the green light for a final investment decision for a crude export pipeline, according to Bloomberg.
The breakthrough regarding the 1,445-kilometer pipeline came following a meeting between Ugandan President Yoweri Museveni and Patrick Pouyanné, CEO of Total. After talks, it is expected a final investment decision will take place in the coming months.
Uganda and Total also reached an agreement on modalities for the Uganda National Oil Company participating in the pipeline project.
Total is currently hoping to conclude a similar agreement with Tanzania, as the pipeline will traverse into the bordering country. These negotiations will pertain to the tendering process for all engineering, procurement, and construction (EPC) contracts. A final investment decision is expected in December.
Total is planning to build the conduit from Uganda’s oil fields in the west of the country to the Tanzanian port of Tanga along with partner Cnooc.