Tue. Jun 18th, 2024

China Petroleum Engineering Inks USD806 Million Deal to Build Uganda-Tanzania Oil Pipeline

China Petroleum Engineering Corp., a Chinese construction engineering company, has penned an engineering, procurement and construction contract worth USD806 million to build the 1,443-kilometer-long East African Crude Oil Pipeline.

Unit China Petroleum Pipeline Bureau Engineering will lay a 610-millimeter-diameter wide pipeline that will connect the oilfields in Kabal in the west of Uganda to Tanzania’s Tanga Port on the east coast of Africa, the Beijing-based firm said yesterday.

The company, which is a unit of oil major China National Petroleum Corporation, will also build auxiliary facilities along the pipeline. The construction period is two years, with another three-month debugging period and 24-month-long warranty period, it said.

The East African Crude Oil Pipeline will allow oil produced in landlocked Uganda to reach the sea port of Tanga in Tanzania and from there be exported to the world. The project is owned by the East African Crude Oil Pipeline, a conglomerate made up of Total Exploration and Production Uganda, China National Offshore Oil Uganda, Uganda National Oil Company, and Tanzania Petroleum Development Corp.

This is the second cross-border crude oil pipeline that China Petroleum Engineering is building in Africa. In December 2021 it won the bidding for the USD881 million West Africa Crude Oil Pipeline that passes through Niger and Benin.

About Post Author