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HomeNewsAfricaUganda approves construction of $3.5bn crude oil export pipeline project

Uganda approves construction of $3.5bn crude oil export pipeline project

The latest approval marks a step forward in developing Uganda’s oilfields, where commercial production has been long delayed


Uganda has approved a licence for the construction of the proposed $3.5bn pipeline that will be used to export crude oil to international markets, reported Reuters. The news agency cited Uganda Information State Minister Godfrey Kabbyanga as saying in an emailed statement that the application to construct the pipeline has been approved by the cabinet.

Being developed by East African Crude Oil Pipeline Company (EACOP), a company controlled by France’s TotalEnergies, the 1,44km-long pipeline is planned to have a peak capacity of 246,000 barrels per day.

The latest approval marks a step forward in developing Uganda’s oilfields, where commercial production has been long delayed. This is due to a lack of infrastructure and disagreements between oil companies and the government.

The pipeline project is being opposed by environmentalists and rights activists, who claims that the project could endanger fragile ecosystems in the region and displace tens of thousands of people.

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