Continental Focus, International Reach

Uganda to Pay Higher Tariff for Crude Exports

Monday, May 27, 2019

Uganda, in a bid to boost its crude oil exports once production begins, announced that it will pay a higher tariff to use the pipeline planned to run through neighboring Tanzania. The pipeline, which spans 1,445 km, will take crude from Uganda’s Lake Albert region to the coast of Tanzania at the Port of Tanga.


The government was initially set to pay a tariff of $12.20 per barrel of crude shipped through the pipeline. However, following negotiations with investors it was agreed that the tariff would be increased to $12.77 per barrel.


The Ugandan fields are jointly owned by Total, CNOOC and Tullow Oil. At a cost of $3.5 billion, approximately two-thirds of the project’s cost will be debt-financed jointly by a Ugandan unit of Standard Bank Group and Japan’s Sumitomo Mitsui Banking Corp.