Total Energies and its partner China National Offshore Oil Corporation (CNOC) have brokered a deal with Uganda and Tanzania to invest more than $10bn in developing crude oil production in East Africa.
The project covers the development of oil fields, processing facilities and a pipeline network in Uganda, plus an export pipeline through Tanzania to carry landlocked Uganda’s crude to a port on the Indian Ocean.
Uganda discovered crude oil reserves near its border with the Democratic Republic of Congo in 2006.
However, production has been repeatedly delayed by disagreements between the government and oil firms over tax and development strategy, and a lack of infrastructure.
Close to 160,000 jobs are expected to be created during the project’s development,.
Government geologists estimate Uganda’s gross reserves at 6 billion barrels, while recoverable oil is forecast at 1.4bn barrels.