Ugandans Criticize Oil Pipeline Deal with Tanzania and Total
Ugandans are making disparaging comments on social media about the multibillion-dollar oil pipeline deal that the country has signed with Tanzania and Total. The secrecy surrounding it has raised fears of corruption.
Uganda, Tanzania and the French oil company Total, along with its investment partner in Uganda, the China National Offshore Oil Corporation (CNOOC), signed a series of agreements on Sunday to build a heated pipeline that will carry crude oil from western Uganda to the Indian Ocean coast.
The deal, worth $3.5 billion (€2.9 billion), and the secrecy surrounding the details have raised public fears of corruption.
Uganda’s crude oil is highly viscous, which means that it needs to be heated to remain liquid enough to flow. The East African Crude Oil Project Pipeline (EACOPP) could be the longest electrically heated crude oil pipeline in the world, at 1,400 kilometres (850 miles). Construction is expected to begin this year.
Tanzania’s new leader, President Samia Suluhu Hassan, was in Uganda to witness the signing of the documents — perhaps her most important executive action since her inauguration in March.
The event was “an auspicious occasion” that would unlock the development of the region’s oil resources, she said. The shareholder agreements cover the construction of the pipeline, which is designed to connect oil fields near Lake Albert to the Tanzanian port of Tanga.
Ugandan President Yoweri Museveni hailed the deal as a major milestone and a victory for the countries.