Tanzania and Uganda have signed an settlement permitting for the development of a 1,445 km (898 miles) crude oil pipeline.
The $3.5bn (£2.7m) undertaking will join Uganda’s oil fields to Tanzania’s port of Tanga.
The signing ceremony was attended by the presidents of each international locations.
Oil reserves have been present in Uganda in 2006 however manufacturing has been delayed partly by a scarcity of infrastructure together with an export pipeline.
A begin date for development has not but been introduced for what is ready to change into East Africa’s first main oil pipeline.
However there are warnings the undertaking may come at an enormous value to some Ugandan communities.
Greater than 12,000 households danger dropping their land and livelihoods, based on a joint report by the Worldwide Federation for Human Rights (FIDH) and Oxfam.
Conservationists have additionally warned that ecosystems are in danger from the drilling in Uganda’s nature reserves.
French oil big Whole is main the plans together with China’s CNOOC, and the governments of Uganda and Tanzania.
Sunday’s ceremony comes days after Whole, the bulk shareholder in Uganda’s oil fields, mentioned it had reached an settlement on the pipeline with Uganda’s authorities.
About 80% of the pipeline will run by way of Tanzania and the undertaking is predicted to create greater than 18,000 jobs for Tanzanians, Reuters information company quotes authorities spokesman Hassan Abassi as saying.