The signing of the tripartite pact between Uganda, Tanzania and the oil companies at Entebbe State House concluded the final agreements required to launch the major project for the construction of the East Africa Crude Oil Pipeline (EACOP) in Uganda and Tanzania.
The agreements concluded include the Shareholders Agreement of EACOP and the Tariff and Transportation Agreement between EACOP and the Lake Albert oil shippers.
The ceremony that was held on Sunday, April 12, 2021, also sees the Lake Albert development encompassing Tilenga and Kingfisher upstream oil projects in Uganda operated by Total and China National Offshore Oil Corporation (CNOOC) respectively.
According to the press release issued by Total, the Tilenga and Kingfisher projects are expected to deliver a combined production of 230,000 barrels of oil per day at plateau.
The three upstream partners include Total with 56.6 per cent, CNOOC with 28.3 per cent while Uganda National Oil Company (UNOC) has 15 per cent.
Production will be transported from the oilfields in Uganda to the port of Tanga in Tanzania via EACOP cross-border pipeline, with Total, UNOC, Tanzania Petroleum Development Corporation (TPDC) and CNOOC as shareholders.
All the partners committed themselves to implement these projects in an exemplary manner and taking into highest consideration the biodiversity and environmental stakes as well as the local communities’ rights and within the stringent environmental and social performance standards of the International Finance Corporation (IFC), with Mr Patrick Pouyanné, the Chairman and Chief Executive Officer of Total saying:
“The Tilenga development and EACOP pipeline project are major projects for Total and are consistent with our strategy to focus on low breakeven oil projects while lowering the average carbon intensity of the Group’s upstream portfolio. These projects will create significant in-country value for both Uganda and Tanzania.”
Mr Pouyanné added that: “Total is also taking into the highest consideration the sensitive environmental context and social stakes of these onshore projects. Our commitment is to implement these projects in an exemplary and fully transparent manner.”
The signing ceremony was held in the presence of Yoweri Museveni, President of the Republic of Uganda, Samia Suluhu Hassan, President of the United Republic of Tanzania, Patrick Pouyanné, Chairman and CEO of Total, as well as representatives of CNOOC, UNOC and TPDC.
About Total
Total is an energy company that produces and markets fuels, natural gas and electricity. The company is active in more than 130 countries.
