Tanzania Signs Agreement With UAE’s ENOC To Address Oil Storage Problems

By Jerome Onoja Okojokwu-Idu
Tanzania Signs Agreement with UAE's ENOC to Address Oil Storage Problems
Tanzania Signs Agreement with UAE's ENOC to Address Oil Storage Problems

Tanzanian authorities have signed a Memorandum of Understanding (MoU) with a United Arab Emirates (UAE) firm, Emirates National Oil Company Group (ENOC) for the construction of infrastructure to receive and store petroleum products.

The deal was brokered on Saturday between the Tanzanian Ministry of Energy and representatives of ENOC.

The Minister for Energy, Mr. January Makamba

The Minister for Energy, Mr. January Makamba at the signing ceremony, noted that one of the major issues that would be addressed by this project is the long waiting time for offloading of oil products, especially on transit to other East African countries.

According to the Minister, shipping delay could persist more than 2 weeks, which he says often leads to an increase in the product’s price.

“The current Petroleum Act requires the country to have enough petrol for utilization for 15 days, but currently, the storage enables us to sustain for 30 consecutive days. Much should be done to increase the country’s storage capacity,” the Minister said.