President Yoweri Museveni has said that Uganda’s first oil will be pumped out of the ground by 2025.
Museveni made the pronouncement while presiding over the Independence Day celebrations at Kololo Independence Grounds on Saturday.
“First oil to be pumped out of the ground will be achieved by 2025 because all agreements have been signed,” he said.
On April 11, 2021, the East African Crude Oil Pipeline (EACOP) deal was signed by the stakeholders that include; Uganda, Tanzania, Total E&P and CNOOC, paving way for the development phase for commercial production of oil.
The signing of the multi-billion dollar deal took place at the launch of the Tilenga Development Project at State House Entebbe.
The signing would pave way for the construction of EACOP at a cost 3.5 billion dollars.
Total E&P Uganda Limited is the majority shareholder in the deal with 72% followed by Uganda with 15%, CNOOC comes third with 8% while the Tanzanian Government holds 5%.
The 1,445km heated EACOP which is the longest in the world will begin from Hoima District in Uganda up to the port of Tanga in Tanzania.
The deal will see over 3 billion barrels of oil flowing out of the ground.
The East African Crude Oil Pipeline is a crude oil export infrastructure which will transport Uganda’s crude oil from Kabaale, Hoima in Uganda to the Chongoleani peninsula near Tanga port in Tanzania for export to the international market.
Museveni said the development as an achievement and highlighted some other benefits including rapid growth of the economy, but decried the corrupt officials whom he described as parasites.
He said that by the end of June 2021, Uganda’s Gross Domestic Product (GDP) was 41 billion dollars, and 117 billion dollars by Purchasing Power Parity (PPP).
“Uganda could have achieved more if it was not for corruption,” he said.
“We could have achieved more if it was not because of parasites who want to harvest what they did not sow,” he said.