KAMPALA) – Uganda has moved closer to developing a major regional crude oil export pipeline after signing a key agreement with French energy giant Total that clears the way for construction of the East African Crude Oil Pipeline linking Uganda to Tanzania.
The agreement is expected to support the development of Uganda’s oil export infrastructure and strengthen regional trade links across East Africa, including potential business opportunities for neighbouring countries such as South Sudan.
Uganda discovered commercially viable crude oil reserves about 14 years ago, but full scale production has faced repeated delays because of limited infrastructure, especially the absence of an export pipeline.
The planned East African Crude Oil Pipeline will stretch about 1,445 kilometres from Uganda’s oil fields to the Tanzanian port of Tanga on the Indian Ocean. The project is estimated to cost about US$3.5 billion, equivalent to around 20.3 trillion South Sudan Pounds at the current June 2026 market exchange rate of 1 US Dollar to 5,800 SSP.
According to reports, Total reached an agreement with the Ugandan government covering the company’s rights and responsibilities during the construction and operation of the pipeline.
Pierre Jessua, Managing Director of Total E&P Uganda, said both sides are expected to finalise implementation of the agreement in the coming months.
The French energy company also said it plans to complete a similar arrangement with Tanzania as procurement and construction preparations continue.
Ugandan President Yoweri Museveni and Total Chief Executive Officer Patrick Pouyanné also approved the participation of the Uganda National Oil Company in the project.
Total is currently the leading investor in Uganda’s oil sector after acquiring Tullow Oil’s interests in Uganda’s onshore oil fields in a US$575 million deal, valued at roughly 3.34 trillion SSP.
China’s CNOOC remains another major partner in Uganda’s oil development sector, which is targeting production capacity of around 230,000 barrels per day once commercial operations begin.
Construction of the pipeline is expected to take between two and three years after final approvals and financing arrangements are completed.
Uganda’s crude oil reserves are estimated at around 6 billion barrels. The reserves were discovered in 2006 within the Albertine Rift Basin near the border with the Democratic Republic of Congo.
Regional analysts say the project could reshape energy trade and transport across East Africa by improving oil export capacity and increasing infrastructure investment flows.
For South Sudan, which relies heavily on oil revenues and pipeline infrastructure through Sudan, Uganda’s progress may also increase regional competition in crude exports while creating opportunities for future cross border energy cooperation and logistics services.
The latest developments also contrast with neighbouring Kenya’s slower progress in commercial oil production. Kenya has faced disagreements with Tullow Oil over taxes and investment incentives linked to oil exploration projects in Turkana County.
Although Kenya later eased some of the disputes and Tullow resumed operations, delays have continued to slow the country’s ambitions to join regional oil exporters despite making its first oil discovery in 2012.
Energy experts say Uganda’s pipeline project may encourage further investment in East African energy infrastructure as governments seek new export routes, stronger regional trade integration and greater energy security.