The Government of Uganda has insisted that Uganda will have its oil out of the ground come 2020 despite many analysts and Ugandans have their reservations about the set deadline.
This assurance was revealed by Eng. Irene Muloni, Uganda’s Minister for Energy and Minerals during the signing of the Intergovernmental Agreement between Government of Uganda and the Government of the United Republic of Tanzania to facilitate the development of the East Africa Crude Oil Pipeline Project (EACOP) held at Serena Hotel, Kampala on Friday.
“2020 is our target and a roadmap has been established to list down the activities that must be carried out between now and 2020,” Muloni said, adding that while many say oil can be a curse, it will be a blessing for Uganda.
The EACOP is a 1445km underground heated pipeline that will start from Kabaale in Hoima District and run through several districts up to the Port of Tanga in Tanzania.
Muloni noted that the pipeline will carry 260k barrels of oil per day during the peak of production.
On Sunday, the modalities, including taxation were agreed and a communique was issued after meetings between Uganda President Yoweri Museveni and his Tanzanian counterpart John Pombe Magufuli.
Muloni added that the Hoima to Tanga pipeline was the least cost route for transporting crude oil at an estimated tariff of US$12.2 per barrel.
Uganda will undertake the pipeline investment as a private driven venture with Government interests taken by the National Oil Company.
Uganda’s Permanent Secretary for Energy Ministry, Dr. Stephen Isabalija reiterated Muloni’s stance, noting that the two governments are committed to deliver the first Oil by 2020.
Uganda has 6.5 billion barrels of petroleum oil of which between 2.5bn to 3.5 billion barrels are said to be recoverable.