(Ecofin Agency) - China National Offshore Oil Corporation (CNOOC) and Total are in talks over the construction of Uganda's oil pipeline that will reach Tanzanian’s seaport of Tanga.
According to the Executive Vice-President of CNOOC, Li Yong (photo), the company was ready to embark on the $4 billion pipeline project. He said discussions are ongoing with France’s Total as regards the required approach to ensure the commencement of the project.
In April, leaders of the East African Community (EAC), an economic bloc that brings together Uganda, Rwanda, Tanzania, Kenya, Burundi and South Sudan, approved that an oil pipeline be constructed to connect oil wells in western Uganda and the east African coastline via Tanzania, Xinhua news reports.
Uganda intends to commence the commercial production of its 6.5 billion barrels of oil discovery. It plans to refine some of the oil and transport the remaining to the east African coast for export.