Uganda and the French oil company Total E&P yesterday signed the Host Government Agreement, for the construction of the East African Oil Pipeline project.
The signing of the HGA is considered a major step towards Uganda’s long-awaited realisation of oil production.
Observers say that with the oil pipeline HGA completed, CNOOC/Total partnership are on track to releasing their Final Investment Decision (FDI) expected later this year.
Commenting about the HGA signing which took place at State House Entebbe, President Yoweri Museveni said:
“I congratulate .@Total upon concluding this agreement which moves us closer to production of crude oil in Uganda.”
Although the details of the HGA are yet to be revealed, Museveni hailed Uganda’s negotiators citing the agreement as a good deal for Uganda.
“I congratulate our Ugandan team, they are good negotiators. We now have a good petroleum team in terms of science, economics. They always help me because they know everything that’s happening in the world in the oil sector.”
After Uganda’s signature, Total E&P will now pursue Tanzania for its signature as the pipeline will have to go through their territory.