Tanzania, Uganda Seek $7bn Oil And Pipeline Funding

Tanzania and Uganda are seeking more than $7bn in funding for oil and pipeline projects in 2019. The total amount includes finance for a $3.5bn East Africa Crude Oil Pipeline project, of which $2.5bn is expected to be provided by Stanbic Bank Uganda, with the remaining $1bn to be sourced from shareholders in the form of equity. 

After numerous delays Uganda’s Minister for Energy Irene Muloni has indicated that production is expected to commence in 2022 from the Kingfisher and Tilenga blocks, more than 10 years after the initial discovery of the country’s crude reserves. The companies operating these blocks include CNOOC, Total and Tullow Oil.

Oil will be exported through Tanzania via a crude export pipeline that is also scheduled for completion in 2020. With a projected capacity of 260,000 barrels per day, the Tanzania Development Corp has stated that it expects to hold a 15-25% stake in the pipeline. Uganda will also hold a stake, with Total holding the majority share.

The development of a local refinery is also expected to be complete by 2023, with a projected capacity of 60,000 barrels per day pending a final investment decision on the project by September 2020.