- EACOP Ltd., the company in charge of the construction and future operation of the East African Crude Oil Pipeline project from Kabaale in Uganda to Tanga in Tanzania, has closed the first tranche of external financing for the project, provided by a syndicate of financial institutions including regional banks such as African Export Import Bank (Afreximbank), The Standard Bank of South Africa Limited, Stanbic Bank Uganda Limited, KCB Bank Uganda and The Islamic Corporation for the Development of the Private Sector (ICD).
- The project has faced widespread condemnation from environmental and civil rights groups. Read more
The EACOP shareholders are TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%) and CNOOC (8%).
In Uganda and Tanzania, the construction of the pipeline is progressing well with a continued focus on safety, environmental sustainability, and local community engagement. The overall project progress exceeded 50% end 2024. More than 8,000 Ugandan and Tanzanian citizens are employed on the project, about 400,000 manhours of training have been provided so far and 500 M$ spent locally on goods and services,” said EACOP in a statement.
About the project
The East African Crude Oil Pipeline is a crude oil export infrastructure that will transport Uganda’s crude oil from Kabaale – Hoima in Uganda to the Chongoleani peninsula near Tanga in Tanzania for export with China the main off-taker. Upon completion, it will have the capacity to transport 246,000 barrels of crude oil per day. This major export system includes 1,443 km (296 km in Uganda and 1,147 km in Tanzania) of insulated and buried 24-inch pipeline, 6 pumping stations, two pressure reduction stations and a marine export terminal in Tanzania (with a 3 MWp solar plant), all along connected to national primarily hydro- based grids for power supply.
Author: Bryan Groenendaal
