Magufuli Makes EACOP Local Content Case

Magufuli and Museveni were in Hoima in November Magufuli and Museveni were in Hoima in November

Tanzania’s President John Pombe Magufuli has asked Total, the lead investor the East African Crude Oil Pipeline (EACOP), to hire local contractors and employ Tanzanians during the construction of the crude export pipeline which will transport Uganda’s crude oil.

The President said Tanzania has adequate and experienced contractors, engineers and skilled labour who can work on the project. Tanzania is not new to constructing pipeline. As a gas producer, Tanzania has over the years laid several pipelines to transport gas. The President was meeting Total President for Marketing and Services Momar Nguer.

Construction of the pipeline from Hoima in western Uganda to Tanga sea port in Tanzania is expected to tee off in January. Uganda is expected to start oil production in 2020 therefore the pipeline has to be ready by then. This provides enourmous job opportunities for both Tanzanians and Ugandans.

"We are highly positive that the project will be completed before the time limit; apart from export markets, the East African region alone has a population of about 165 million people who will provide reliable market for the product.

The government of Tanzania assures maximum cooperation to Total and other partners in execution and operating the pipeline, provided you pay requisite taxes and abide by the laws of our country," President Magufuli told the delegation.

President Magufuli and his counterpart Yoweri Kaguta Museveni in NOvember commissioned the construction of the 1,445km-long East African crude oil pipe line from Hoima district in Uganda to the Tanzanian port of Tanga.

The heated crude oil pipe line, the longest of its kind in the world, will cost $3.5 billion and will be completed by 2020 making Uganda join the ranks of oil producing countries. The pipeline works will be undertaken by Total E&P, CNOOC and Tullow Oil together with the two governments of Uganda and Tanzania. The pipe line will on completion carry 216,000 barrels of crude oil for export daily.

Presidnet Museveni said because of the numerous concessions from the Tanzanian government, the cost of delivering a barrel of oil from Hoima to Tanga will be $12.2 per barrel, making Uganda’s crude oil profitable even at today’s rate of $50 per barrel.

“The pipeline is going to cost US$3.5 billion, which is a lot of money but make sure that you earn from it. If you have a hotel, those who work on the pipeline will lodge in it; if you have food in the garden, you can sell it to these workers and if you have a car for hire, you can use it,” said Museveni.

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