Finally, Uganda and Tanzania sign the deal to construct a 1,445 km (898 miles) crude oil pipeline. Uganda’s oil fields will be connected to Tanzania’s port of Tanga with the $3.5 billion (£2.7m) initiative. The presidents of both nations, Mr. Magufuli of Tanzania and Mr. Museveni of Uganda, took part in the signing ceremony.
The Ugandan government discovered oil deposits in 2006, but the lack of facilities, albeit an export pipeline, has partially slowed the progress of the oil production. They have not yet slated a start date for the construction of the first massive oil pipeline in East Africa.
The Effects of Uganda Tanzania Oil Deal
According to the alert, however, this venture could affect some Ugandan communities immensely. A recent report of the International Federation of Human Rights (FIDH) and Oxfam over 12,000 families risk losing their homes and livelihoods. Consequently, conservationists have also warned that habitats are at risk from fracking in the natural reserves of Uganda.
Total, the French oil producer, along with China’s CNOOC, is heading the plans between the Uganda and Tanzania governments. Days after the largest shareholder in Uganda’s oil fields, Total, announced that the Uganda government had agreed on the crude oil pipeline on Sunday. The project would generate over 18,000 jobs for Tanzanians and Ugandans, with 80 percent of the pipeline in Tanzania.