Oil & Gas

The East African Crude Oil Pipeline (EACOP) project, which connects oil pipelines from Hoima, Uganda, to Chongoleani, Tanga, has reached 45.5% completion in its construction phase. Ongoing construction activities are taking place across various locations, from Mtukula in Kagera to Chongoleani in Tanga. This update was shared on October 18, 2024, by Asiadi Mrutu, the EACOP Project Coordinator from the Tanzania Petroleum Development Corporation (TPDC), during a visit by the National Planning Commission and TPDC's Board of Directors to the construction site of a heat treatment facility in Sojo village, Nzega District, Tabora Region.

Mrutu highlighted that, thanks to the efforts of President Samia Suluhu Hassan, the overall execution of the project has advanced significantly. As of October 2024, the government, through TPDC, has contributed approximately 977.6 billion Tanzanian shillings to the EACOP project. The heat treatment facility continues to produce pipes, with a total of 70.7 kilometers of pipes already installed with heating systems. The construction of the pipeline and its associated infrastructure is actively ongoing.

The project has achieved notable successes, including the creation of 7,584 jobs and local purchases of goods and services valued at around 833.7 billion Tanzanian shillings. Additionally, the project has generated approximately 40 billion shillings in revenue for the government and facilitated technology transfer from contractors. Mrutu emphasized the importance of these achievements for the local economy and workforce.

The construction of the heat treatment facility in Sojo village has reached 93% completion and was officially inaugurated by Deputy Prime Minister and Minister of Energy Dr. Doto Biteko on March 26, 2024. TPDC, as a shareholder, owns land for the pipeline corridor and construction camps. To date, compensation totaling 35.1 billion shillings has been paid to 9,858 out of 9,927 affected residents, representing a remarkable 99.3% compensation rate. The project has also successfully constructed 340 alternative housing units for 294 residents who lost their homes due to the project. The government is committed to collaborating with other stakeholders to ensure timely funding and progress, with construction expected to be completed by mid-2026.