Wednesday, 19 May 2010

Tanzania to expand oil infrastructure

From Pipelines International, Houston, Texas, United States

US-based firm Noor Oil & Industrial Technology (NOIT) has signed an implementation agreement with the Government of Tanzania to build an oil pipeline and refinery.

The pipeline will run from Dar es Salaam to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika. Plans, design and feasibility studies are currently in progress.

NOIT is also in advanced negotiations to expand the pipeline into the neighbouring states of Uganda, Rwanda and Burundi, which would ensure a steady supply of petroleum products in the region. The refinery will process crude oil from the Middle East, and will have a capacity of 200,000 bbl/d, and may be expanded at a later date.

The entire project is estimated to cost $US3.5 billion, and the Tanzanian Government will have a 5 per cent stake in the pipeline and a 10 per cent stake in the refinery.

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