Uganda agrees with Tanzania to build oil pipeline

Uganda and Tanzania leaders have agreed to build a pipeline from Ugandan oil fields to the Tanzanian coast, connecting landlocked oil fields to the Indian Ocean.

The proposed link will cover 1,120 kilometers at an estimated cost of about $4 billion and its construction will create 15,000 jobs, Tanzania’s president John Magufuli said in a statement.

We discussed plans to build a 1120KM oil pipeline between Tanga and Uganda, which is expected to employ 1500 people. pic.twitter.com/YkzZ174bv5

— Yoweri K Museveni (@KagutaMuseveni) March 1, 2016

The move is expected to strike a blow to Kenyan pipeline plans as statements issued after Ugandan president Yoweri Museveni and his Tanzanian counterpart John Magufuli met on Tuesday did not mention the fate of the Kenyan oil pipeline plan.

In August, Museveni and Kenya’s president Uhuru Kenyatta, had made a joint call to construct a pipeline via Kenya’s northern region.

Tanzania is competing with neighbouring Kenya for the pipeline that will tap Ugandan oil deposits being developed by companies including Total SA of France, China National Offshore Oil Corp. and London-based Tullow Oil Plc.