The government of Uganda under the administration Uganda’s oil and gas sector discovered commercial oil deposits in its mid-western region over 14 years but extraction has been delayed by the protracted negotiations with the oil majors.
The long-awaited Final Investment Decision (FID) with international oil companies Total E&P and CNOOC will close on Sunday
This decision will unlock billions of dollars of investment in Uganda’s oil and gas sector.
The deal will also pave way for the construction of the 1440km crude export pipeline from Western Uganda to the Tanzanian Indian Ocean Port of Tanga, a key piece of infrastructure needed to get the east African country’s oil out of the ground and on to international markets.
Tanzania’s President Samia Suluhu Hassan is also traveling to Kampala to take part in the three-way talks that should culminate in the signing of the deal.
France’s Total, China’s CNOOC, the governments of Uganda and Tanzania are all shareholders in the pipeline project.
As much as $10 billion in investment is expected to flow into Uganda when the FID is closed.