Total E&P on Wednesday suspended its planned $3.5 billion crude export pipeline from Uganda to Tanzania until further notice.
The French oil major has terminated all activities related to the 1,445-kilometer conduit from its crude fields in Uganda to Tanga in Tanzania because shared ownership in the project was to be determined upon the completion of the Tullow deal, an official familiar with the project at Total’s Ugandan office said.
The development comes days after Tullow Oil’s plan to sell another stake in the project to France’s Total and China’s CNOOC was called off.
The suspension comes weeks after the oil giant laid off 12 staff in Uganda. The oil giant dismissed employees who were set to undertake works on it, the official said. The explorer was involved in initial land acquisition in both countries, the official said.
“All EACOP activities including tenders have been suspended until further notice because of collapse of the deal,” the Reuters quoted an official from Total E & P.
After Tullow discovered oil in 2006, the country made ambitious plans to construct a 216,000-barrel-a-day pipeline and a refinery.
Uganda’s anticipated time line for delivering first oil from the project has been adjusted multiple times.
A recent government estimate stated that it would come online in 2022. A final investment decision on the project was targeted for the end of this year.