It is the aspiration of the Uganda government and joint venture partners Total, CnooC and Tullow Oil to achieve FID by the end of 2017 according to the latest full year results by the Irish explorer.
To date the Government of Uganda confirmed its decision to route an oil export pipeline through Tanzania to the port of Tanga as well as awarded the three venture partners eight production licenses as well as constituted both the Petroleum Authority to regulate the oil industry and the Uganda National Oil Company.
On the ground the first phase of the upstream environmental social impact assessment (ESIA) has also been completed and the study is currently on the second phase.
Houston based Gulf Interstate Engineering last month was awarded the contract to design the Uganda Tanzania crude oil pipeline.The company will be tasked with coming up with the pipeline specifications, the project execution plan, implementation schedule as well as bid documents for 1,445 km $3.55 billion pipeline.
Front End Engineering Design (FEED) for both the upstream and pipeline are expected to commence this month.
If the FID is achieved by year end the first oil is expected to occur in 2020 or 3 years after FID.
Following its recent farm-down of Uganda assets to Total Tullow Oil holds 11.76% interest in the upstream and pipeline projects a share expected to reduce to a 10% interest in the upstream project when the Government of Uganda formally exercises its right to back-in.
It has not yet been determined what interests the Governments of Uganda and Tanzania will take in the pipeline project,