French and Chinese oil giants have sealed a landmark $10 billion deal to develop Uganda’s energy resources and build a vast regional oil pipeline.
The Final Investment Decision was announced on Tuesday at a ceremony in Kampala by the heads of France’s TotalEnergies and the China National Offshore Oil Corporation (CNOOC).
“Today is the day we commit to invest $10 billion in the Tilenga and Kingfisher projects and the 1,443 km long pipeline,” TotalEnergies chairman and CEO Patrick Pouyanne said in a statement.
The project aims to exploit the huge crude oil reserves at Lake Albert, a 160-kilometre (100-mile) natural border between Uganda and the Democratic Republic of Congo.
The oil would be pumped from landlocked Uganda through a 1,443-kilometre (900-mile) heated pipeline -– said to become the longest of its type when completed — through Tanzania to the Indian Ocean port of Tanga.
Pouyanne described the controversial pipeline as a “masterpiece” of a project, although critics say it threatens livelihoods and fragile ecosystems in the heart of Africa.
Lake Albert lies atop an estimated 6.5 billion barrels of crude, of which about 1.4 billion barrels are currently considered recoverable.
Source – AFP.