The pipeline will traverse more than 2,500 Km across Uganda and Tanzania enroute to the Indian Ocean port of Tanga.

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 announced that it 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 joint venture company said in a March 26 press release that the development demonstrates the support of financial institutions on this transformative regional infrastructure.

“The successful closing of this first tranche of external financing represents a significant milestone for EACOP and its shareholders TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%) and CNOOC (8%),” the statement said.

• The New Vision reported today that the cash, amounting to $2.5 billion (about UGX9.3 trillion), would be released in three portions - two of $1 billion each, and the final one of $500m.

Quoting Ministry of Energy Permanent Secretary Irene Batebe, the paper said that the with the first batch of funding secured, the country was set to achieve ‘first oil’ on schedule in 2026.

The project, which traverses more than 2,500 km across Uganda and Tanzania, is progressing well, according to the press release, with a continued focus on safety, environmental sustainability, and local community engagement.

• Towards the end of last year, the China Petroleum Pipeline Engineering Co. Ltd, the construction contractor for the East African Crude Oil Pipeline (EACOP) Ltd, received a delivery of nine trucks of insulated pipe pieces, which are currently stored at the Main Camp and Pipe Yard (MCPY) 4, in Kyotera District.

“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,” it said.

The 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 to the international market. Upon completion, it will have the capacity to transport 246,000 barrels of crude oil per day.

The project also includes six 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.

The construction of the EACOP Pipeline in combination with the Tilenga and Kingfisher projects will benefit the economies of Uganda and Tanzania include tax revenues for the two Host Governments, job creation, national content, new infrastructure, logistics, skills and technology transfer and enhancement of the trade corridor between Uganda and Tanzania.

• The pipeline project for export is to be developed in tandem with the oil refinery, which will process crude oil into finished products for local and regional consumption.

• The government of Uganda has signed a Memorandum of Understanding (MOU) with Alpha MBM Investments LLC from the UAE for the development of the refinery. Negotiations for key commercial agreements, including implementation, crude oil supply, and shareholders agreements, are ongoing.

The refinery project, worth about $4 billion, is expected to be a ‘game-changer’ for Uganda's energy security, processing 60,000 barrels of oil daily. It will also drive a key part of Uganda's Energy Transition Plan by producing Liquefied Petroleum Gas (LPG) to fuel the country's 'clean cooking' initiative.