Uganda and Tanzania have signed an agreement to explore the possibility of building a crude oil pipeline between the two countries, Uganda’s Ministry of Energy and Mineral Development said, The Star reported.
The Tanzanian Petroleum Development Corp., and Total E&P Uganda, signed a memorandum of understanding on “development principles” for a crude oil pipeline between Hoima, Uganda, and Tanga Port, Tanzania, Oil & Gas Journal explained.
Production has yet to start from any of several oil discoveries made in Uganda since 2006. Total, Tullow Oil PLC, and CNOOC Ltd. have development proposals in various stages of negotiation. The Ugandan government also is considering two export-pipeline routes through Kenya.
“The (agreement) creates a working framework for the potential development of a crude export pipeline from Hoima to Tanga Port of Tanzania,” the ministry added. “The objective is to select a route that will result in the lowest unit transportation cost that constitutes the most viable option for the crude export pipeline,” the statement said according to Citizen Digital.