Tanzanian President John Magufuli said, “We have agreed that Tanzania will take 60% of the profits and Uganda will remain with 40%,” at a televised event on Sunday from his hometown of Chato after a meeting with Ugandan President Yoweri Museveni.The accord is yet another milestone that, alongside agreements between the governments and companies led by Total SA, bring closer a final investment decision for the project.
The share arrangement is partly based on Tanzania’s role in building and operating 1,115 kilometers of the conduit, according to Magufuli. Uganda will be responsible for the 330 kilometer-section in its territory. Total is leading plans to build the conduit from Uganda’s oil fields in the west of the country to the Tanzanian port of Tanga along with partner Cnooc Ltd. of China and the two governments. Uganda, which discovered commercially viable crude deposits in 2006, has an estimated 6 billion barrels of oil resources and plans to start pumping crude from the ground in 2023-24.
Museveni and Magufuli are moving to make up for lost time in developing the pipeline, after Tullow Oil Plc in April agreed to sell its Ugandan assets to Total. The sale had been delayed partly by tax disagreements with Ugandan authorities.