ABN - The leaders of Tanzania and Uganda have paved the way for the start of construction work on a US$3.55 billion crude oil export pipeline by laying a foundation stone.
The 1,445km pipeline will pump 216,000 barrels of oil per day from the Western region of landlocked Uganda to Tanzania’s Tanga seaport on the Indian Ocean, where it will be exported to international markets.
At the laying ceremony in Tanga, Uganda’s President Yoweri Museveni said the pipeline is not just a bilateral infrastructure project, but an East African project which will bring benefits to the entire region.
"This is a great event for the two countries and for East Africa. This pipeline is not just for the crude oil of Uganda; it can become an East African pipeline," said Museveni.
“There are already hydrocarbon resources detected in Eastern Congo, the Semliki valley; there are confirmed hydrocarbon resources in the Turkana area of Kenya; there are also possibilities of hydrocarbons in Tanzania, Rwanda and Burundi.”
Uganda first discovered crude oil in its Western region back in 2006, and estimates overall reserves at 6.5 billion barrels.
The project is set to be completed by 2020.