EA Crude Oil Pipeline Dispute Goes To Arbitration

Following months of dispute between governments and oil companies concerning the East African crude oil pipeline project, the Uganda National Oil Company’s legal officer Peter Mulilisa has confirmed that arbitration has been agreed.

The project concerns a 1.445km export pipeline that will run between Kabaale in Uganda to Tanzania’s Tanga port, with a capacity for 216,000 barrels daily. 

According to The East African, arbitration is expected to take place in London, with the majority of involved parties preferring a neutral venue for proceedings.

Among the outstanding issues are the expropriation clause, with investors seeking guarantees that host governments cannot revoke land use rights during the course of the project.

With a final investment decision expected in June, speedy resolution of the outstanding issues is critical.