Uganda on Wednesday issued a final tender to company controlled by TotalEnergies to construct a $3.5 billion oil pipeline through to Tanzania.
The final approval will provide a way forward to the construction of the pipeline that will be used to transport the country’s crude to international.
The signature follows a Monday approval by the Uganda’s cabinet allowing the construction of the pipeline by the East African Crude Oil Pipeline Company Limited.
TotalEnergies is the largest shareholder in EACOP with a 62% stake. Other investors include the state-run Uganda National Oil Company and Tanzania Petroleum Development Corporation, which have 15% each, while China’s CNOOC (0883.HK) holds 8%.
France’s TotalEnergies and the China National Offshore Oil Corporation signed a $10-billion agreement earlier this year to develop Ugandan oilfields and ship the crude through a 1,445-kilometre (900-mile) pipeline to Tanzania’s Indian Ocean port of Tanga.