Uganda's military-owned National Enterprise Corporation has secured a contract to guard nearly 300 kilometers of the East African Crude Oil Pipeline through a joint venture with Dubai firm SKA-International Group. The agreement signed on Monday with China Petroleum Pipeline Engineering covers security operations from Hoima to the Tanzanian border along the $5 billion pipeline route. Lt. Gen. James Mugira called the deal a strategic achievement for the country's energy sector during a ceremony in Kampala.
The 1,443-kilometer heated pipeline will carry waxy crude from Uganda's Albertine Graben oil fields to Tanzania's port of Tanga after production begins. Authorities estimate the project could generate $2 billion yearly once operators reach peak output of 190,000 barrels daily. TotalEnergies and CNOOC are leading the development of reserves discovered in 2006, with 1.4 billion barrels considered recoverable from total deposits of 6.5 billion barrels.
The 1,443-kilometer heated pipeline will carry waxy crude from Uganda's Albertine Graben oil fields to Tanzania's port of Tanga after production begins. Authorities estimate the project could generate $2 billion yearly once operators reach peak output of 190,000 barrels daily. TotalEnergies and CNOOC are leading the development of reserves discovered in 2006, with 1.4 billion barrels considered recoverable from total deposits of 6.5 billion barrels.
