Total and Gov’t sign Agreement for Uganda’s Crude Oil Pipeline Project

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Total and Uganda government signed the Host Gov't Agreement (HGA) for the Pipeline Project on Friday; File Photo

The Government of Uganda and Total have concluded and signed the Host Government Agreement (HGA) which will govern the East Africa Crude Oil Pipeline (EACOP) project in Uganda.

The two also agreed on the conditions of entry of the Uganda National Oil Company (UNOC) in the project.

The ceremony took place at State House Entebbe on Friday and was presided over by President Museveni, and witnessed by Mr. Patrick Pouyanne, the Chairman and Chief Executive Officer of Total.

The Minister of Energy and Mineral Development, Mary-Gorett Kitutu, signed on behalf of the Uganda while Nicolas Terraz, the Total Exploration and Production President for Africa, signed on behalf of his employer.

A 1445km long, 24-inch diameter, buried and heated East African Crude Oil Pipeline (EACOP) from Kabaale, Hoima in Uganda to Chongoleani in Tanga, Tanzania, is being developed to transport crude oil from Uganda to Tanga port in Tanzania. The development of this pipeline is being led by the licensed upstream oil companies in Uganda, with participating interests by the Governments of Uganda and Tanzania.

The Signing of the HGA signifies that the oil companies (represented by Total) and Government have reached agreement on the commercial framework for the implementation of the EACOP Project in the territory of Uganda commenced in August 2017. It also represents significant progress towards achieving the Final Investment Decision which is expected by the end of this year.

Speaking shortly after the signing ceremony, President Museveni promised to get in touch with his Tanzanian counterpart, John Pombe Magufuli, to resolve other pending issues, especially concluding the Host Government Agreement in Tanzania.

“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.

Mr. Museveni reassured Total of the Government’s support during their work.
“It has taken long, but it was a deliberate move. I congratulate Total and our Ugandan team on this milestone. We have been slow but steady and sure,” said the President.

Total CEO Pouyanne said this is a great achievement between the Total and the Government of Uganda. “It was a bumpy road but I am glad we have overcome the challenges. I thank the teams from both sides that have worked tirelessly,” he said.
He commended President Museveni for his leadership and promised that the project would be executed successfully.

The ceremony follows a series of high-level discussions between President Museveni and Mr. Pouyanne which were aimed at addressing the commercial bottlenecks in the achievement of a Final Investment Decision (FID) for Uganda’s upstream and EACOP projects.

The function was attended by among others the Attorney General, Mr. William Byaruhanga. The government and Total also agreed and signed on the following agreements in relation to the Uganda National Oil Company: The Deed of Assignment in Relation to the Block 1, 2 and 3A Production Sharing Agreements, The Deed of Novation and Amendment with the Uganda National Oil Company in relation to the Joint Operating Agreement in respect of Exploration Areas 1, 2 and 3A.

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