Oil & Gas

The East African Crude Oil Pipeline (EACOP) project has reached an impressive 64.5% completion milestone, unlocking significant economic benefits for Tanzania. To date, the country has earned over TSh 50 billion through development levies, taxes, and other project-related charges. Stretching 1,443 kilometers from Uganda’s Hoima to Tanzania’s Tanga Port, the pipeline marks one of the most ambitious infrastructure undertakings in the region. Of the total pipeline, 1,147 kilometers are within Tanzania’s borders, emphasizing the country's key role in the project's success.

Tanzania’s Project Coordinator, Mr. Asiadi Mrutu, shared updates during a televised appearance on TBC1, revealing that the project has cost around TSh 1.3 trillion so far. Over 1,200 Tanzanians have been employed, including 346 locals from Chongoleani, where the main oil depot and tanks are being developed. Construction progress at the Chongoleani site includes 80% completion of oil tanks and 39% of the main terminal, which will serve as the storage and export hub for Uganda’s crude oil.

Mr. Mrutu also confirmed that pipeline welding and laying has been completed along 360 kilometers of the route, and construction of crude oil pumping stations is at 55.6% completion. The project is well-supplied, with enough pipes available to cover up to 900 kilometers. Compensation to residents affected by the project has reached 99.3%, a major milestone in ensuring smooth progress and community support. Tanzania owns 15% of the project, giving the nation a strategic and economic advantage once the pipeline becomes operational.

According to Ms. Neema Mbuja from the Ministry of Energy, the government is pleased with the project's adherence to timelines and expectations. Upon completion, EACOP will become the world’s longest heated crude oil pipeline. It is a joint venture involving TotalEnergies (62%), Uganda National Oil Corporation (15%), Tanzania Petroleum Development Corporation (15%), and China National Offshore Oil Corporation (8%). The total investment is expected to exceed USD 5 billion (over TSh 13 trillion).