Nairobi — Uganda and Tanzania presidents have signed a pact to commission 1,445 km East African crude oil Pipeline.T
Tanzania President Magufulu Pombe said the project will see that Tanzania makes more than USD 3.24 billion and see the creation of over 18,000 jobs.
"Under this project Tanzannia will have 1145km which will see the creation of more than 18,000 jobs while Uganda will utilize the rest of t," said Magufuli.
The agreement on the pipeline construction will also see that the project will see that sections of Uganda such as Congo area access oil that will also benefit other East Africa regions such as Kenya and Burundi.
"So many pars of Uganda already have oil and this project will also strengthen our relationship with other East African states.
Uganda discovered oil reserves in 2006 and needs the planned 1,445-km East African Crude Oil Pipeline to be in place to start commercial production.
The pipeline is estimated to cost USD3.5 billion where the state announced that the project would take three years for its completion.
The announcement by the two states comes after Uganda and Total collaborated to see the construction of the crude pipeline.
"I am glad that Total and other companies licenced in the country are taking bold steps to quickly commence the production of petroleum," President Museveni said on September 12.
Total is the major shareholder in Uganda's oilfields.