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) mission will join Uganda’s oil fields to Tanzania’s port of Tanga.
The signing ceremony was attended by the presidents of each nations.
Oil reserves had been present in Uganda in 2006 however manufacturing has been delayed partly by an absence of infrastructure together with an export pipeline.
A begin date for building has not but been introduced for what is about to turn out to be East Africa’s first main oil pipeline.
However there are warnings the mission may come at an enormous value to some Ugandan communities.
Uganda nation profile
Conservationists have additionally warned that ecosystems are in danger from the drilling in Uganda’s nature reserves.
French oil big Complete is main the plans together with China’s CNOOC, and the governments of Uganda and Tanzania.
Sunday’s ceremony comes days after Complete, the bulk shareholder in Uganda’s oil fields, stated 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 mission is anticipated to create greater than 18,000 jobs for Tanzanians, Reuters information company quotes authorities spokesman Hassan Abassi as saying.
- Oil & Gasoline trade