The government of Uganda and Total Exploration and Production (Africa) have signed the Host Government Agreement (HGA) for the East Africa Crude Oil Pipeline (EACOP) project.
The ceremony which held at the State House Entebbe was presided over by President Museveni and witnessed by the Chairman, Chief Executive Officer of Total, Mr Patrick Pouyanne.
Uganda’s Minister of Energy and Mineral Development, Dr Mary Gorett Kitutu, signed on behalf of her country, while Nicolas Terraz, the Total Exploration and Production President for Africa, signed on behalf of his employer.
The Signing of the HGA by the parties indicates that the oil company and Ugandan government have reached agreement on the commercial framework for the Lake Albert Development Project.
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It also represents a significant progress towards achieving the Final Investment Decision which is expected by the end of this year.
Speaking shortly after the signing ceremony, President Museveni said Uganda is a very peaceful and attractive investment destination.
He said 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 the durable capacity of our country.
“I am glad that Total and other companies licenced in the country are taking bold steps to quickly commence the production of petroleum,” Museveni said.
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President Museveni reassured Total of the government’s support during their work.
“It has taken long, but it was a deliberate move, I can assure you Ugandans,” said the President, adding that Uganda is a rich country with oil as a small fraction of this natural wealth.
He pointed out that other potential lies in Agriculture, Tourism, Services, and Human Resource among others.
The President promised to get in touch with his Tanzanian counterpart, John Pombe Magufuli, to resolve other 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.
In her comment, Kitutu said once 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.
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The Minister urged local companies to take advantage of the agreement to tap into opportunities in the oil sector.
The Total CEO, Pouyanne said the signing of the HGA was 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 President Museveni for his leadership and promised that the project would be executed successfully.