Preparations for oil pipeline impress partner states

Sylvester Domasa

TANZANIA and Ugandan governments are satisfied with preparations for the construction of a four billion US dollar (over 8trn/-) oil pipeline.

While contractors behind the East Africa’s largest oil pipeline await key documents to start the project works, Tanzanian government has already approved the proposed fiscal packages that include exemptions on transit fee, import tax, withholding tax and value added tax, which will be tabled before the National Assembly next January for endorsement.
Tanzanian officials, briefing a Ugandan delegation led by Principal Secretary in the Ministry of East African Corporation Edith Mwanje, said in Dar es Salaam yesterday that the Environmental Impact Assessment (EIA) on the 24-inch diameter pipeline has been commissioned, with the inter-governmental negotiations scheduled for conclusion by the end of this month.
Principal Geologist in Tanzania’s Ministry of Energy and Minerals, Engineer Adam Zuberi, told the Ugandan team that a post government agreement between the partner states and executing companies will be effected before the final investment decision this November.
“Preparations are on a right pace ... the pending agreements between the hosting countries and executing companies are critical for the timely completion of the project,” said Engineer Zuberi.
The UK-based Tullow Oil, French oil Total SA and Chinese state-owned oil giant Cnooc Ltd will develop and invest in the oil fields and the pipeline whose capacity is 200,000 barrels, daily.
Ms Mwanje said the discussions on the project implementation were moving on quite well, expressing confident on the multi-billion US dollar project’s preparations though she lacked details on the specific dates that the two parties will conclude the discussions.
According to Tanzania Foreign Affairs and East African Corporation’s Deputy Permanent Secretary, Ambassador Ramadhani Mwinyi, the Ugandan officials had been in the country since last Sunday.
"After the technical discussion in Dar es Salaam, they decided to visit the site where the crude oil terminal from Uganda will be constructed in Tanga,” he told reporters in Tanga.
At the port, authorities said plans were well underway to meet the overall aim of enabling Uganda to export its first crude reserves by 2020.
Tanzania Port Authority (TPA)’s Tanga port, with paved yard capacity of 34,689 square metres, has three warehouses sitting on the 66,411square metres and a dry docking area to handle up to 300 tonnes.
Tanga Port Master Henry Anika said part of the plans includes construction of a container scanner and preparation of Chongoleani, the area strategically chosen to construct the crude oil terminal.
The port master said TPA has already acquired 200 hectares, noting that the oil discharging jet will be placed 2.3 kilometres between the storage facility and the sea.
“We selected the jet area because of its location.
It has a 23 metre depth and goes up to 40 metres ... the area is safe for vessels during high tides and winds as it is close to Pemba Island,” he noted, adding that the port was prepared to upgrade the port to accommodate the expected cargo volumes.
He said already two barges with 2,500 tonne capacity each have been ordered and are expected to arrive by March 2018.
“We are adding another pilot boat which will arrive by November, next year and a 30-tonne tug boat is expected in November, this year.”