Uganda and Tanzania have signed an agreement to move forward with construction of the East African Crude Oil Pipeline, a $3.55 billion, 897-mile pipeline that will transport crude oil between the two nations.
“This project will benefit Uganda and Tanzania,” Ugandan President Yoweri Museveni said. It is a realization of the economic and social development of the country. It is one of the strategic ways for the integration of the East African Community and will strengthen our relationship.”
Tanzanian President John Magufuli says construction of the pipeline will help both nations capitalize on increasing oil production.
“This is a very big project,” Magufuli said. “I know Uganda have received 6.5 billion barrels of oil in Hoima. We also expect to find oil in Lake Tanganyika and Lake Eyasi, all this will lead to this same pipe.”
Once finished, the East African Crude Oil Pipeline is expected to transport 200,000 barrels of oil per day.