DRC and South Sudan to link on Uganda, Tanzania pipeline

DRC and South Sudan to link on Uganda, Tanzania pipeline

Construction of Uganda-Tanzania crude oil pipeline to start in March​



THURSDAY FEBRUARY 25 2021​

pipe pic

Summary

  • In September last year, President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the Eacop project in a bilateral meeting held in Chato District in Geita.


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By Alex Nelson Malanga
More by this Author

Dar es Salaam. The construction of the $3.5 billion East African Crude Oil Pipeline (Eacop) is scheduled to start next month, it was revealed yesterday.

Briefing journalists yesterday about his recent five-day official visit to France, Foreign Affairs minister Palamagamba Kabudi said Total Oil Company director for Africa Division Nicolas Terraz assured him that actual construction of the project would start in the second week of March.

“While in France I held talks with Total director who assured me that all is set for the construction of the pipeline to kick off in the second week of next month,” Prof Kabudi told a press conference.

In September last year, President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the Eacop project in a bilateral meeting held in Chato District in Geita.

This was a follow-up meeting after Uganda signed the Host Government Agreement (HGA) with Total on the multibillion dollar Eacop Project.

The two leaders urged officials from both countries to expedite the harmonisation of pending issues and fast-track the remaining agreements including the Tanzanian HGA to fasten the implementation of the project.


As a result of the push from the duo, in October last year, Tanzania and Total signed an agreement that could pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.

Negotiations for the Tanzanian HGA covered, among others, project authorisations, land rights, local content, health safety and environment and labour standards.

The 1,447-kilometre pipeline will be used for transportation of crude oil from Hoima in Uganda to the Tanga port for export overseas.

The pipeline, two thirds of which will pass through Tanzania, will generate at least 4,700 direct employments and 27,000 indirect jobs, according to Prof Kabudi.

Tanzania and Uganda agreed in March 2016 that a pipeline to transport crude oil from the Lake Albert basin in west Uganda to the markets overseas be routed through the Tanga port.

An agreement to the letter was signed by the two neighboring countries in May 2017 followed by the laying of a foundation stone at the Tanga port by presidents Magufuli and Museveni in August the same year.

Eacop is expected to unlock East Africa’s potential by attracting investors to explore opportunities in the region.

In another development minister Kabudi said Total is planning to construct the coating industry and lubricant blending plant here in the country.

Meanwhile, Prof Kabudi held talks withFrench Development Agency (AFD) deputy managing director Bouduin Philippe who informed him about the France government’s decision to double the fund for the development projects to €1.2 billion (Sh3.3 trillion), for five years from 2017 to 2022.

Furthermore, AFD in collaboration with Tanzania are in the final stages of discussions about the Tanzanian strategic projects in clean water and sanitation, energy and infrastructure sectors.

“Already €791.7 million (Sh2.2 trillion) has been set aside for the projects,” said Prof Kabudi.



MY TAKE

Kwa waliokuwa wanauliza lini ujenzi unaanza mmeona confirmation? The construction of EACOP will start in the second week of March!

CC: Tony254
 

Construction of Uganda-Tanzania crude oil pipeline to start in March​



THURSDAY FEBRUARY 25 2021​

pipe pic

Summary

  • In September last year, President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the Eacop project in a bilateral meeting held in Chato District in Geita.


Alex pic

By Alex Nelson Malanga
More by this Author

Dar es Salaam. The construction of the $3.5 billion East African Crude Oil Pipeline (Eacop) is scheduled to start next month, it was revealed yesterday.

Briefing journalists yesterday about his recent five-day official visit to France, Foreign Affairs minister Palamagamba Kabudi said Total Oil Company director for Africa Division Nicolas Terraz assured him that actual construction of the project would start in the second week of March.

“While in France I held talks with Total director who assured me that all is set for the construction of the pipeline to kick off in the second week of next month,” Prof Kabudi told a press conference.

In September last year, President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the Eacop project in a bilateral meeting held in Chato District in Geita.

This was a follow-up meeting after Uganda signed the Host Government Agreement (HGA) with Total on the multibillion dollar Eacop Project.

The two leaders urged officials from both countries to expedite the harmonisation of pending issues and fast-track the remaining agreements including the Tanzanian HGA to fasten the implementation of the project.


As a result of the push from the duo, in October last year, Tanzania and Total signed an agreement that could pave the way for the construction of a crude oil pipeline from Uganda to the Tanga port.

Negotiations for the Tanzanian HGA covered, among others, project authorisations, land rights, local content, health safety and environment and labour standards.

The 1,447-kilometre pipeline will be used for transportation of crude oil from Hoima in Uganda to the Tanga port for export overseas.

The pipeline, two thirds of which will pass through Tanzania, will generate at least 4,700 direct employments and 27,000 indirect jobs, according to Prof Kabudi.

Tanzania and Uganda agreed in March 2016 that a pipeline to transport crude oil from the Lake Albert basin in west Uganda to the markets overseas be routed through the Tanga port.

An agreement to the letter was signed by the two neighboring countries in May 2017 followed by the laying of a foundation stone at the Tanga port by presidents Magufuli and Museveni in August the same year.

Eacop is expected to unlock East Africa’s potential by attracting investors to explore opportunities in the region.

In another development minister Kabudi said Total is planning to construct the coating industry and lubricant blending plant here in the country.

Meanwhile, Prof Kabudi held talks withFrench Development Agency (AFD) deputy managing director Bouduin Philippe who informed him about the France government’s decision to double the fund for the development projects to €1.2 billion (Sh3.3 trillion), for five years from 2017 to 2022.

Furthermore, AFD in collaboration with Tanzania are in the final stages of discussions about the Tanzanian strategic projects in clean water and sanitation, energy and infrastructure sectors.

“Already €791.7 million (Sh2.2 trillion) has been set aside for the projects,” said Prof Kabudi.



MY TAKE

Kwa waliokuwa wanauliza lini ujenzi unaanza umeona confirmation? The construction of EACOP will start in the second week of March!

CC: Tony254
Haha tutaamini tu mradi ukianza. Sio vijimaneno maneno tu.
 
Haha tutaamini tu mradi ukianza. Sio vijimaneno maneno tu.
vuta subra wiki mbili ni karibu siku hiyo nitakushambulia na mapicha ya evidence mpaka ukimbie! Imagine during this pandemic, Tanzania is having mega projects right and left in January SGR lot 3 launch, now in March again a mega pipeline project $3.5 bln worthy with 80% to be spent in Tanzania! Kumbuka miradi ya around $1bln inangoja launch Dodoma!
 
Tony254 mwana usiye msikivu, Unakumbuka hii maneno?


Tulibishana nikakwambia mradi utadoda ukabisha sasa muanze kusahau Uganda kujenga storage facilities zake Jinja!

Muanze ku-reverse flow direction ready to receive refined oil from Kampala!


 
Tony254 mwana usiye msikivu, Unakumbuka hii maneno?


Tulibishana nikakwambia mradi utadoda ukabisha sasa muanze kusahau Uganda kujenga storage facilities zake Jinja!

Muanze ku-reverse flow direction ready to receive refined oil from Kampala!



Tutareverse flow tu, hakuna shida. Bora pipeline tayari ipo kureverse flow ni kazi kidogo. Halafu hio refinery hata haijaanza kujengwa bado. Kwikwikwi.
Unachekesha sana. Hata hio feasibility study ya refinery sidhani kama imefanywa. Halafu nani atafinance hio refinery? Hii Uganda masikini wataweza kufinance hio refinery kweli?
 
Tutareverse flow tu, hakuna shida. Bora pipeline tayari ipo kureverse flow ni kazi kidogo. Halafu hio refinery hata haijaanza kujengwa bado. Kwikwikwi.
Unachekesha sana. Hata hio feasibility study ya refinery sidhani kama imefanywa. Halafu nani atafinance hio refinery? Hii Uganda masikini wataweza kufinance hio refinery kweli?
Wewe upo dunia ipi? Ati feasibility study ya Uganda's refinery haijafanywa! ? Usiwe Tomaso kaka! Kubali tu huu mradi tuliwazidi maana hamna experience kwenye masuala ya regional projects hata mradi wa oil jetty Kisumu una-fail kwa sababu hiyo achilia mbali SGR Kenya-Uganda..

Total, Eacop oil deal in high gear after call for bids​

THURSDAY FEBRUARY 25 2021​



oil

A Total oil platform in Angola. French oil major Total and its affiliate East African Crude Oil Pipeline (Eacop) have invited bids for various services in Uganda and Tanzania. FILE PHOTO | AFP

Summary

  • The Uganda-Tanzania crude oil partners are set to splash $10 billion initial bonanza.
  • The tenders target Uganda and Tanzania-based firms to compete across 10 categories of offers.
  • Total Chief Executive Patrick Pouyanne says Uganda project will have first oil in 2024.

General Image

By JULIUS BARIGABA
More by this Author

Ugandan players keen on a slice of oil and gas deals through local content provisions, with an estimated $8 billion to $10 billion worth of investment expected to flow into the country upon final signature is done

French oil major Total and its affiliate East African Crude Oil Pipeline (Eacop) have invited bids for various services, a sign that the long-awaited final investment decision (FID) oil deal that is expected to unlock $10 billion of investments, is around the corner.

The tenders target Uganda and Tanzania-based firms to compete across 10 categories of offers.

The Eacop route lies 80 percent in Tanzania, where Total is seeking bidders to provide commercial and office space for the pipeline company, on which the anticipated FID is premised.

Some tenders have closed but those invited last week, are open till March 19, and sources told The EastAfrican that “there is a lot of interest” from companies making “many inquiries about a number of issues.”

Association of Uganda Oil and Gas Service Providers (AUGOS) Chief Executive Emmanuel Mugarura, said the group’s members have been waiting for more than a decade for these oil and gas related opportunities.

“These are good signs that this project is taking off. Another piece in works and optimism for our members,” he said, adding that some have applied for the closed tenders while others are starting to ready bids for the tenders that have just opened.

Ugandan players are keen to get a piece of the oil and gas deals through local content provisions, with an estimated $8 billion to $10 billion worth of investment expected to flow into the country.

Window of opportunity​

During the early stages of exploration, oil companies spent an estimated $3 billion, 28.3 percent of which remained in the country, according to Mr Mugarura.

With bigger money and opportunities to tap into as the country readies for oil production, AUGOS targets between 30 and 40 percent of the expected investment flows to remain in Uganda.

Elly Karuhanga, chairman of Uganda Chamber of Mines and Petroleum says the time for local companies to make money from oil and gas projects is the period between announcement of the final investment decision and when production starts.

“Between now and oil production, is when you will have all sorts of opportunities open up,” he says.

Total Chief Executive Patrick Pouyanne says Uganda project will have first oil in 2024, with FID confirmed this year, giving a three-year period of field development activity, which is the window of opportunity for local service providers, according to Mr Karuhanga.

“Thousands of experts, contractors, and others, will fly into Uganda to provide all kinds of services. They will need accommodation, food, transport... That’s the time for the local companies to make money. Once production starts, most of the activity is technical where Ugandans cannot compete,” he says.

Expected benefits​

The tenders were invited both online and in print in the local media, and include rental of commercial and office space for Eacop in Tanzania, bank accounts opening and management both in Uganda and Tanzania.

Tanzania is the host country for Eacop and is expected to benefit from the company’s spending for office and commercial space rent over the 30-year period during which oil from Hoima in western Uganda will be transported through the pipeline to the Indian Ocean port of Tanga.

The preferred location for the rented property for Eacop office space is near the Masaki and or Oyster Bay neighbourhoods, and must have adequate parking facilities, life safety and security aspects including adequate means of fire and smoke protection, emergency evacuation and mustering space, secured entry with guards’ area, kitchen and hygiene facilities.

The tender invitation also adds that a mixture of private and shared offices and open plan workspaces will be considered, with meeting room facilities of various sizes.

Other tenders, mainly for Uganda-based companies are services for Buliisa camp maintenance and management, catering and hospitality, social relocation support.

Borrowing spree​

Uganda’s oil project has stuttered for more than a decade, but this month, Total and Eacop called for expressions of interest for service providers across 10 categories of tenders, both in Uganda and Tanzania.

Players say this has brought optimism back into an industry where several entrepreneurs went on a borrowing spree to invest in construction of hotels, transport and logistics, heavy lifting equipment and air transport services, when Uganda announced first oil for 2015.

However, most business persons burnt their fingers as Uganda’s oil project faltered, missing several first oil targets and till now, it has failed to materialise.


 
Wewe upo dunia ipi? Ati feasibility study ya Uganda's refinery haijafanywa! ? Usiwe Tomaso kaka! Kubali tu huu mradi tuliwazidi maana hamna experience kwenye masuala ya regional projects hata mradi wa oil jetty Kisumu una-fail kwa sababu hiyo achilia mbali SGR Kenya-Uganda..

Total, Eacop oil deal in high gear after call for bids​

THURSDAY FEBRUARY 25 2021​



oil

A Total oil platform in Angola. French oil major Total and its affiliate East African Crude Oil Pipeline (Eacop) have invited bids for various services in Uganda and Tanzania. FILE PHOTO | AFP

Summary

  • The Uganda-Tanzania crude oil partners are set to splash $10 billion initial bonanza.
  • The tenders target Uganda and Tanzania-based firms to compete across 10 categories of offers.
  • Total Chief Executive Patrick Pouyanne says Uganda project will have first oil in 2024.

General Image

By JULIUS BARIGABA
More by this Author

Ugandan players keen on a slice of oil and gas deals through local content provisions, with an estimated $8 billion to $10 billion worth of investment expected to flow into the country upon final signature is done

French oil major Total and its affiliate East African Crude Oil Pipeline (Eacop) have invited bids for various services, a sign that the long-awaited final investment decision (FID) oil deal that is expected to unlock $10 billion of investments, is around the corner.

The tenders target Uganda and Tanzania-based firms to compete across 10 categories of offers.

The Eacop route lies 80 percent in Tanzania, where Total is seeking bidders to provide commercial and office space for the pipeline company, on which the anticipated FID is premised.

Some tenders have closed but those invited last week, are open till March 19, and sources told The EastAfrican that “there is a lot of interest” from companies making “many inquiries about a number of issues.”

Association of Uganda Oil and Gas Service Providers (AUGOS) Chief Executive Emmanuel Mugarura, said the group’s members have been waiting for more than a decade for these oil and gas related opportunities.

“These are good signs that this project is taking off. Another piece in works and optimism for our members,” he said, adding that some have applied for the closed tenders while others are starting to ready bids for the tenders that have just opened.

Ugandan players are keen to get a piece of the oil and gas deals through local content provisions, with an estimated $8 billion to $10 billion worth of investment expected to flow into the country.

Window of opportunity​

During the early stages of exploration, oil companies spent an estimated $3 billion, 28.3 percent of which remained in the country, according to Mr Mugarura.

With bigger money and opportunities to tap into as the country readies for oil production, AUGOS targets between 30 and 40 percent of the expected investment flows to remain in Uganda.

Elly Karuhanga, chairman of Uganda Chamber of Mines and Petroleum says the time for local companies to make money from oil and gas projects is the period between announcement of the final investment decision and when production starts.

“Between now and oil production, is when you will have all sorts of opportunities open up,” he says.

Total Chief Executive Patrick Pouyanne says Uganda project will have first oil in 2024, with FID confirmed this year, giving a three-year period of field development activity, which is the window of opportunity for local service providers, according to Mr Karuhanga.

“Thousands of experts, contractors, and others, will fly into Uganda to provide all kinds of services. They will need accommodation, food, transport... That’s the time for the local companies to make money. Once production starts, most of the activity is technical where Ugandans cannot compete,” he says.

Expected benefits​

The tenders were invited both online and in print in the local media, and include rental of commercial and office space for Eacop in Tanzania, bank accounts opening and management both in Uganda and Tanzania.

Tanzania is the host country for Eacop and is expected to benefit from the company’s spending for office and commercial space rent over the 30-year period during which oil from Hoima in western Uganda will be transported through the pipeline to the Indian Ocean port of Tanga.

The preferred location for the rented property for Eacop office space is near the Masaki and or Oyster Bay neighbourhoods, and must have adequate parking facilities, life safety and security aspects including adequate means of fire and smoke protection, emergency evacuation and mustering space, secured entry with guards’ area, kitchen and hygiene facilities.

The tender invitation also adds that a mixture of private and shared offices and open plan workspaces will be considered, with meeting room facilities of various sizes.

Other tenders, mainly for Uganda-based companies are services for Buliisa camp maintenance and management, catering and hospitality, social relocation support.

Borrowing spree​

Uganda’s oil project has stuttered for more than a decade, but this month, Total and Eacop called for expressions of interest for service providers across 10 categories of tenders, both in Uganda and Tanzania.

Players say this has brought optimism back into an industry where several entrepreneurs went on a borrowing spree to invest in construction of hotels, transport and logistics, heavy lifting equipment and air transport services, when Uganda announced first oil for 2015.

However, most business persons burnt their fingers as Uganda’s oil project faltered, missing several first oil targets and till now, it has failed to materialise.


Article nzuri hio although halijazungumza kuhusu refinery.
I have two things to say.
1. Ikiwa mradi huu utaanza March kama inavyotabiriwa basi mradi huu ni game-changer kwa uchumi wa Tanzania na Uganda. There is no doubt about it. Especially Uganda maana wao bado ni masikini sana ila baada ya muda mfupi watatoka kundi la LDC na kujiunga nasi katika kundi la MIC. TZ mtafaidika kwa njia nyingi tu ikiwemo kulipwa rent ya pipeline kupitia Tanzania.
2. Jambo la pili ni kwamba ujenzi wa pipeline na ujenzi wa refinery ni miradi miwili tofauti kabisa. Hizi ni projects mbili tofauti na nimekuwa nikizifuatilia zote. Ujenzi wa pipeline ndio umekuwa ukisonga mbele ila ujenzi wa refinery bado una matatizo mengi. Kama nilivyosema awali, hata financier sijui ni nani. Hatujui kama ni banks ndizo zitakazofinance hio refinery au kama ni nchi za EAC zikiongozwa na Uganda. Yaani mradi huu wa refinery haujapiga hatua kubwa na kama nilivyosema, siko sure hata kama hio feasibility study imefanywa. Kwa hivyo usichanganye miradi hizi mbili maana ni miradi tofauti. Pipeline inakuwa financed na Total kwa hivyo tupo sure kwamba mradi huu utakamilika maana Total wana pesa sio mchezo ila mradi wa refinery I can guarantee you 100% kwamba hautajengwa. Hio nipo sure kabisa mia fil mia.

Halafu soma hii article inayosema kwamba Uganda refinery is too costly.

 
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