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PR/004/10/15

THE REPUBLIC OF UGANDA

PRESS STATEMENT

UGANDA AND TANZANIA SIGN CRUDE OIL EXPORT PIPELINE FRAMEWORK

KAMPALA 12/10/2015
The Governments of the Republic of Uganda and the United Republic of Tanzania yesterday
signed a Memorandum of Understanding to identify and assess the least cost crude oil export
pipeline to the East African Coast.
The agreement creates a working framework for the potential development of a crude export
pipeline project option from Hoima to Tanga Port of Tanzania. The objective is to select a route
that will result in the lowest unit transporation cost and sonstitutes the most viable option for the
pipeline project.
Dr Fred Kabagambe-Kaliisa, the Permanent Secretary of Ugandas Ministry of Energy and
Mineral Development, said the deal enables the parties to continue working together to fine
tune studies and field work to further appraise the merit of a crude export pipeline option
through Tanzania with a view to achieving the lowest unit transportation cost for crude oil from
Uganda.
If we can be able to get least cost pipeline to Tanga, then our crude oil will be exported
cheaply. We need to carryout due diligence. This requires real technical work to inform our
citizens about the end-user tariffs and the Memorandum of Understanding sets a stage for
carrying out detailed evaluation exercise, he explained.
The deal follows an earlier Memorandum of Understanding (MoU) signed between the
Government of the Republic of Uganda and the International Oil Companies licensed in the
country for the commercialization of the newly discovered petroleum resources.
It was agreed that the crude oil discovered in Uganda is commercialized through crude to
power, refining; and export of crude oil to international market.
Dr Kabagambe-Kaliisa explained that Uganda has looked at various options of developing the
crude oil export pipeline that includes Hoima-Lacor-Lamu Port, Hoima-Nairobi-Mombasa Port;
and now Hoima-Northern Tanzania-Tanaga Port.

As a country, we evaluating the routes with the idea that we have the least cost route because
we would like to ensure that our crude oil has value, he said.
The MoU, he said, includes Total Exploration and Production Uganda and Tanzania Petroleum
Development Corporation (TPDC). In this regard, the Government of the Republic of Uganda,
the Government of the United Republic of Tanzania, the TPDC and Total E & P Uganda on the
Hoima-Northern Tanzania-Tanga pipeline development framework.
Adewale Fayemi, the General Manager Total E & P Uganda, thanked President Yoweri
Museveni of the Republic of Uganda and President Jakaya Kikwete the United Republic of
Tanzania for the impetus and facilitation of the process that has led to the signing of the deal.
The MoU we have signed today is key milestone of achieving the least cost option to transport
Ugandas crude oil to the Indian Ocean Coast, and we look forward to fine tune the process,
he said. We, at Total, we are committed to support the route as least cost option and we shall
collaborate with all the partners.
James Mataragio, the Managing Director TPDC, said this is a great project, adding If
executed, it will great opportunities for the people of Tanzania.
This project is going to open new investment opportunities, and create jobs. We have that
experience required to build and manage pipelines. I want to assure Ugandans that they have
got all the support from TPDC and Government of United Republic of Tanzania.
Ngosi Mwihava, the Ag Permanent Secretary of Tanzanias Ministry of Energy and Minerals,
said the crude oil export pipeline was the best mode of transportation especially considering the
resources Uganda has in place.
This infrastructure will stand the test of time in our regional cooperation. The due diligence is
valid exercise because you have to justify the route you are going to consider to justify the least
cost option, he said.
We will make sure that we come with good option for both Uganda and the East African region
because this is an opportunity to cement for regional integrations.

For more information please contact: communications@energy.go.ug