Uganda has approved a $3.5 billion oil pipeline project. The multi-billion dollar oil pipeline project, controlled by France’s TotalEnergies will see that Uganda’s crude is transported to the international markets.
In an emailed statement issued today, The state minister for information, Godfrey Kabbyanga revealed that the cabinet approved the application to construct the $3.5 billion oil pipeline at a meeting on Monday. The construction by the East African Crude Oil Pipeline Company Ltd (EACOP), where TotalEnergies has the largest shares, will develop the East African country’s oilfields.
The $3.5 billion oil project is scheduled to run from Uganda’s oilfields in the country’s west to a port on Tanzania’s Indian Ocean coast. It will cover a distance of 1,445 kilometres.
Why Uganda delayed the approval of the $3.5 billion Oil Pipeline Project?
The approval of the $3.5 billion Oil Pipeline Project was delayed for nearly two decades because of a lack of infrastructure and misunderstandings between oil companies and the government. Also, reports say that environmentalists have kicked against the project because they claim it will displace tens of thousands of people. In their campaign, the rights activists also expressed concerns that the project could endanger fragile ecosystems in the region.
Uganda and its crude oil discovery
The East African country discovered crude oil reserves in 2006. The reserves were located close to its border with the Democratic Republic of Congo. But, the country found it difficult to explore the discovery because of skirmishes bordering on taxes and development strategies.
However, with the recent approval of the $3.5 billion oil pipeline project, the country’s gross reserves which stand at 6 billion barrels could greatly increase. Also, the recoverable oil estimated at 1.4 billion barrels by government geologists could see a leap.
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