Oil & Gas

The East African Crude Oil Pipeline (EACOP) project has taken a significant step forward as EACOP Ltd. successfully secured its first tranche of external financing. This milestone marks a crucial financial breakthrough for the 1,443-kilometer pipeline, which will link Uganda’s Kabaale region to Tanzania’s Chongoleani peninsula. The funding was obtained from a syndicate of regional financial institutions, including the African Export-Import Bank (Afreximbank), reinforcing regional support for the massive infrastructure project.

The financing group comprises 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). This regional financial backing comes despite initial challenges, including the withdrawal of potential Western financiers and insurers due to environmental concerns and sanction threats. The project's ability to secure alternative funding highlights Africa’s growing commitment to self-reliant infrastructure development.

EACOP Ltd. is jointly owned by TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%), and CNOOC (8%). The pipeline will transport 246,000 barrels of crude oil per day and features a marine export terminal, six pumping stations, and pressure reduction stations. Additionally, part of its operations will be powered by a 3-megawatt peak solar plant, underscoring efforts to integrate sustainable energy solutions.

Construction of the pipeline is progressing steadily, with overall project completion exceeding 50% by the end of 2024. Beyond infrastructure, the project has created over 8,000 jobs for Ugandan and Tanzanian citizens, delivered 400,000 man-hours of training, and injected $500 million into local economies. While opposition from environmental and human rights activists persists, EACOP Ltd. remains committed to meeting international environmental and social standards, including those set by the International Finance Corporation and the Equator Principles.