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Money from Uganda’s oil not for consumption, says Museveni as government & Total ink Oil Pipeline Agreement

President Museveni. Courtesy Photo

The government of Uganda has signed a Host Government Agreement (HGA) with Total for the East Africa Crude Oil Pipeline (EACOP) project.

This happened September 10, at State House Entebbe.

The function was presided over by President Museveni, and witnessed by Mr. Patrick Pouyanne, the Chairman and Chief Executive Officer of Total.

The Minister of Energy and Mineral Development, Mary-Gorett Kitutu, signed on behalf of the Uganda while Nicolas Terraz, signed on behalf of his employer.

 The signing of the HGA implies that the oil companies (represented by Total) and Government of Uganda, have reached agreement on the commercial framework for the L. Albert Development Project.  

It also represents significant progress towards achieving the Final Investment Decision which is expected by the end of this year. 

President Museveni said Uganda is a very peaceful and attractive investment destination.

He said that proceeds from oil will be used to further develop the country’s other important sectors like infrastructure, education and health.

“Our oil will be used to develop our infrastructure, and ICT to enhance durable capacity of our country,”Museveni said.

“I am glad that Total and other companies licenced in the country are taking bold steps to quickly commence the production of petroleum,” President Museveni added.

The President reassured the exploration company of government’s support during their work.

He pointed out that other potential lies in Agriculture, Tourism, Services, and Human Resource among others.

The President promised also promised to get in touch with Tanzanian President John Pombe Magufuli, to resolve all the pending issues, especially concluding the Host Government Agreement in Tanzania.

“I congratulate Total and our Ugandan team on this milestone. We have been slow but steady and sure,” the President said.

Minister Kitutu said that the final investment decision is made by the oil companies, the opportunities for investment in the country will grow exponentially and give a boost to the economy.

Total CEO Pouyanne said this is a great achievement between the Total and the Government of Uganda.

“It was a bumpy road but I am glad we have overcome the challenges. I thank the teams from both sides that have worked tirelessly,” he said.

He commended the Ugandan President for his leadership and promised that the project would be executed successfully.


The government and Total also agreed on the following agreements in relation to the Uganda National Oil Company:

1. The deed of assignment in relation to the Block 1 Production Sharing Agreement & Block 1 Production Licences in respect of exploration Areas 1,2 and 3A

2. The deed of novation and amendment with Uganda National Oil Company in relation to the Joint Operating Agreement in respect of Exploration Areas 1,2 and 3A. 


The oil pipeline will start in Buseruka sub-county, Hoima District, and run for 1,445 km to the Tanzania port city of Tanga. It will be the world’s longest heated oil pipeline after its completion.

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