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Africa Business News of Friday, 12 June 2020

Source: bbc.com

Total sets date for Uganda oil pipeline construction

The energy giant Total will start to build a pipeline to export oil from Uganda in March next year.

The French company, which is developing reserves of oil discovered around Lake Albert, in a consortium with CNOOC of China, has finalised talks about the pipeline with Tanzania and Uganda

Total is close to buying out one of the partners in the project, Tullow Oil, which will smooth the way for decisions about final investments in various projects.

In addition to constructing a pipeline to transport crude oil from western Uganda to the port of Tanga, in Tanzania, Total will build a fuel refinery.

The pipeline is expected to be completed within 36 months.

The government in Kampala says the only unresolved issue is a requirement from Total for Uganda to cover any losses caused by political risks, like war or terrorism.

However, the government wants the Chinese and French energy firms to get insurance against these type of losses.

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