French Giant Total willing to Fund Construction of Uganda Crude Oil Pipeline to Tanzania

Tanzanian Presidency said French giant Total is willing to Fund the construction of a crude Oil export pipeline from Uganda oil fields to Tanzania Port town of Tanga.

The remarks from Tanzania presidency came following a meeting between Total Chief Executive Javier Rielo and Tanzania President John Pombe Magufuli.

“Javier Rielo assured President John Magufuli that the company will begin construction of the crude-oil pipeline project from Uganda to the Tanga port as quickly as possible because there is money for the project,” the presidency said Monday.

In July 2015, Rielo held a close door meeting with Uganda President Yoweri Museveni in which the company expressed preference in commencing studies on the economic viability of the route from Uganda’s Oil rich Albertine graben to Tanzania as opposed to Kenya.

The 1,410-kilometer (876-mile) pipeline will cost as much as $4 billion and employ 1,500 people directly, according to the statement.


The ‘Ping pong’ over the best route for Uganda Oil pipeline still drags as major stake holders and Technocrats are divided between the two port options. Analysts say, this indecision is delaying the project.

Tullow, which has oil discoveries in Uganda and Kenya of around 2.3 billion barrels, would favor the route via Kenya.

“It is clear that, due to obvious economies of scale, a joint pipeline connecting the two major oil resources in East Africa is the lowest cost-option for both Uganda and for Kenya,” Tullow spokesman George Cazenove told Bloomberg.

Last week, Kenya state owned television KBC reported that Kenya and Uganda officials are set to meet purposely look into the way forward for the much uncertain fate of the of an Oil pipeline.


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