Uganda and Tanzania on Tuesday reached a Final Investment Decision (FID) with Total Energies (TTEF.PA) and National Offshore oil Corporation on a more than $10 billion crude oil production project in East Africa.
The announcement was made by Total Energies Chairman and Chief Executive Officer Patric Pouyanna at the event held at Kololo Independence Grounds.
“In the name of the joint venture partners and Total Energies, I declare the final investment decision for the Lake Albert development Project,” he said.
The Final Investment Decision (FID) was officially launched by President Museveni. The announcement means that construction works on Tilenga, Kingfisher and the East African Oil Pipeline can now takeoff with TotalEnergies,CNOOC,UNOC and Tanzania Petroleum Development(TPDC) as lead partners.
President Museveni thanked all the stakeholders for their role in the realization of this historic development describing it as a new chapter in the oil and gas sector.
“I salute and congratulate TotalEnergies and CNOOC for finally reaching a final investment decision because I was getting a bit impatient. I am glad you have concluded all issues,” He said.
Speaking at the event, Uganda’s Energy Minister, Ruth Nankabirwa said the investments are expected to create over 160,000 jobs for Ugandans and a growth to the country’s GDP ratio of 22%.
Meanwhile Tanzanias Vice President Philip Isdor Mango said his government under the leadership of HE Samia Suluh Hassan has given the Petroleum Development Corporation TShs259.96 billion as equity to participate in the East African Oil Pipeline Project.
The project will cover development of oil fields, processing facilities and a pipeline network in Uganda. It will also include the construction of an export pipeline through Tanzania to carry Uganda’s crude oil to the Indian Ocean port.
Uganda expects its oil to arrive on markets in early 2025 at an output of 230,000 barrels per day, which will put the country above some African OPEC members in terms of oil production.
However Uganda National oil Company Chairman, Emmanuel Kangole said that these developments come with a huge responsibility on the Petroleum Authority of Uganda (PAU) as well as other stakeholders.
Katongole also argued that if it were possible, the first oil should flow out of the ground at least by 2024 and not 2025 as planned because “Ugandans are eagerly waiting to taste the fruits of oil”