Page 18 - DMEA Week 44 2020

DMEA TRANSPORT DMEA

Total, Tanzania sign HGA

on EACOP project

TANZANIA FRANCE’S Total has concluded a host govern- government on the other accords that must be
ment agreement (HGA) with Tanzania on the in place before EACOP can be built. The parties
The EACOP pipeline construction of the East Africa Crude Oil Pipe- have not yet finalised or signed a shareholders’
will will carry oil from line (EACOP), which will pump production agreement (SHA) or an agreement on tariffs and
Total’s Uganda pipeline from fields in Uganda to the coast of the Indian transport, local press agencies noted. Without
to a Tanzanian port. Ocean. these, Total cannot make a final investment deci-
EACOP, the company set up to build and sion (FID) on the EACOP project.
operate the pipeline, confirmed the signing The French major appears to be optimistic
of the agreement in a post on its website dated about its chances of reaching these milestones
October 26. It reported that the parties had for- quickly. Company representatives reportedly
malised the accord at a ceremony attended by said last week that they expect to make the FID
Nicolas Terraz, the president of Total Explora- in December 2020 or January 2021. If they meet
tion & Production Africa; Adelardus Kilangi, the this deadline, EACOP will be able to start con-
attorney general of Tanzania; and Stanley Mabiti, struction work before the end of the first quarter
EACOP’s legal advisor. of next year.
The HGA moves Total and its partners one Total has become the majority shareholder
step closer towards beginning work on the pipe- in EACOP (and in the fields that will provide
line. The document lays out the rights and obli- throughput for the link) through its acquisi-
gations of the Tanzanian government and the tion of the Ugandan assets of Tullow Oil (UK/
investors with respect to the project. It also out- Ireland). It will work with Uganda and Tanza-
lines the legal framework for the construction of nia to build a 1,445-km pipeline from Hoima,
the pipeline while defining environmental and a city near Lake Albert, to Tanga, a port on the
other standards, liability and options for arbitra- Indian Ocean. The cost of building the pipe-
tion and termination of the project. line, which will be able to handle 216,000 bar-
With this document signed, Total is now rels per day (bpd) of oil, is expected to amount
in a position to negotiate with the Tanzanian to $3.55bn. ™

P18 www. NEWSBASE .com Week 44 05•November•2020