KAMPALA– Uganda and Tanzania days ago signed a Memorandum of Understanding [MoU] through which the East African Crude Oil Pipeline [EACOP] would be jointly guarded and protected against any threats that could derail its development as Uganda works hard to beat the deadline of producing first oil by 2025.
Uganda’s Minister for Defense Vincent Bamulangaki Ssempija signed on behalf of Uganda, while his Tanzanian Counterpart Dr. Stergomena L. Tax signed on behalf of her country at an event that took place at Protea Skys Hotel in Kampala.
The deal based on cooperation and security between the countries is meant to enhance commitment to safety and sustainability of the facility as well as protecting the communities through which the pipeline runs from its base in Kaabale, Hoima district in western Uganda.
Speaking after signing the deal, Defense Minister Bamulangaki Ssempijja noted that this was one of the key points in the discussion between Presidents Samia Suluhu Hassan and Yoweri Museveni in their earlier meeting, requiring the two countries to expedite it.
“It is amazing that we have taken this step today which includes reviewing the MOU on defense and security cooperation as well as operationalizing the intergovernmental security committee for the East African Crude Oil Pipeline project,” he said.
Dr. Stergomena L. Tax said the cooperation provides the two sister countries with an opportunity to reflect on the issues of mutual development and stability in efforts to forge a common understanding and a sustainable approach to peace and stability.
She noted that terrorism still stands out as a key challenge to regional security, which requires countries to work together against the threat.
“Terrorism remains a major threat which requires us to have joint and proportionate efforts and measures,” she said.
She praised the defense and security cooperation between the two countries, saying that it has grown over the period “right from independence when the founders of the two countries devoted to securing freedom for their people, arguing that the two countries have remained brothers.”
The deal signed would require both countries to share their information and intelligence as well as work jointly to combat threats such as terrorism, arms trade, drug trafficking, cyber security and illegal immigration, among others.
It is also expected to handle institutional and isolated sabotage of critical facilities including the crude oil pipeline as well as handle emerging threats like epidemics.
Other officials present at the event were; UPDF Chief of Defense Forces Gen.Wilson Mbasu Mbadi as well as his Tanzanian counterpart Gen. Venance Salvatory Mabeyo. Others included Gen Elias Athanas who led the Tanzanian technical team and Brig Gen. Asingura Kagoro leading the Ugandan technical team.
Others on the Committee were; Maj Gen [Rtd.] Innocent Oula, the Deputy Managing Director of National Enterprise Corporation (NEC) Deputy Chief of Military Intelligence Brig Gen. Abdul Rugamayo, Brig-Gen. Dominic Twesigomwe, the Commandant National Counter Terrorism Centre(NCTC) and the Director of Training in UPDF Brig-Gen. Fred Twinamasiko among others.
The EACOP is a 1,443km, 24-inch diameter heated and buried crude oil pipeline that will start from Kabaale, Hoima in Uganda to Chongoleani, Tanga in Tanzania. The pipeline planned to cost US$3.5 billion, will have a manifold in Kabaale, Hoima, six pumping stations two of which, will be located in Uganda, 27 heating stations and two pressure reduction stations.
Legal Framework
The Inter-Governmental Agreement between Uganda and Tanzania was signed during May 2017 and Foundation Stones for the EACOP were laid both in Tanga and Hoima during August 2017 and November 2017 respectively.
Negotiations of the Uganda Host Government Agreement (HGA) for EACOP between the PPT and the GoU commenced in February 2018 and were concluded in September 2020. Subsequently, negotiations for the Shareholders Agreement (SHA) and the Transportation and Tariff Agreement (TTA) were also finalised. This culminated into the signing of the Uganda HGA, SHA and TTA on April 11, 2021, hence the launch of Uganda’s oil and gas projects.
Oil fields
Oil company Total operates Tilenga oil blocks and CNOOC International operates the smaller Kingfisher project on Lake Albert.
Tilenga is the name given to a project located on Block 2 that will tap multiple fields via 31 well pads hosting 425 wells, oil and gas flowlines plus the central processing plant and other facilities.
Tilenga is the most important element of the much larger-scale development that Ugandan government officials said in September will cost US$16 billion.
Upstream reported recently that US contractor McDermott International was in pole position to land the engineering, procurement, supply, construction and commissioning contract for the 200,000 barrels of oil per day [bpd] Tilenga facility to be built on the Lake Albert shore.
The development of the smaller Kingfisher field, with China’s Offshore Oil Engineering Corporation chosen to build its processing plant. Kingfisher will produce some 40,000 bpd.
Total says the fields together are expected to produce some 230,000 bpd.
Meanwhile a refinery will be built at Kabaale, along with a 211-kilometre petroleum products pipeline that will terminate near Kampala. The refinery will have capacity of some 60,000 bpd.
https://thecooperator.news/oil-companies-ready-to-invest-10-billion-dollars-in-oil-and-gas-sector/
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