Construction of the Uganda-Tanzania oil pipeline is slated to start in January next year, according to Uganda’s Energy Minister Irene Muloni.
The construction of the pipeline, which will export Ugandan crude oil to the international market, will be complete in 2020.
Muloni told a press conference in Hoima, Tanzania, that following closed-door discussions with the Tanzanian delegation in Hoima, the two countries had agreed to fast-track the project which will cover 1,443 kilometres, reported the Daily Monitor.
Oil explorers have discovered more than 6.5 billion barrels of crude oil reserves from about 40 percent of the Albertine basin in western Uganda.
Uganda’s new round of oil exploration licensing may see the country increasing its petroleum reserves, if the surveys prove positive.
She said the delegations from Uganda and Tanzania would meet again in Tanzania in October to launch the front-end-engineering-design for the project.
Muloni added that feasibility studies estimate the project to cost $3.55 billion. Land acquisition assessments, surveys, environmental and social impact studies will be conducted before construction starts.
A pipeline company will be set up and Uganda, Tanzania and other interested East African states will have shares in it.
-African News Agency
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