French oil and gas exploration company Total E&P has signed a Host Government Agreement (HGA) with the Ugandan Government for the development of the East Africa Crude Oil Pipeline (EACOP) project. The HGA will govern the export pipeline in Uganda and will cost approximately $3.5 billion. Construction is expected to commence early next year.
The HGA will also regulate the construction and operation of the crude oil pipeline from Hoima, in Uganda, to Tanzania, benefiting both Uganda and Tanzania through the transportation of crude oil to the international market.
“We have reached major milestones which pave the way to the final investment decision in the coming months,” stated Pierre Jessua, Managing Director of Total E&P Uganda. “We now look forward to concluding a similar agreement with the Government of Tanzania and to completing the tendering process for all major engineering, procurement, and construction contracts.”
Jessua ensured that conditions will be put in place for the implementation of project activities, with a focus on land acquisition. Total E&P intends to undergo constructive dialogue with communities and NGOs involved in all project activities.