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 nations.
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 turn into East Africa’s first main oil pipeline.
But there are warnings the undertaking might come at an enormous price to some Ugandan communities.
Conservationists have additionally warned that ecosystems are in danger from the drilling in Uganda’s nature reserves.
French oil large Total is main the plans together with China’s CNOOC, and the governments of Uganda and Tanzania.
Sunday’s ceremony comes days after Total, 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 Tanzania and the undertaking is anticipated to create greater than 18,000 jobs for Tanzanians, Reuters information company quotes authorities spokesman Hassan Abassi as saying.