EACOP SECURES MAJOR FUNDING AS CONSTRUCTION SURPASSES 55% MILESTONE

The East African Crude Oil Pipeline (EACOP) project has reached a significant milestone by securing the first tranche of external financing from a consortium of leading financial institutions. This consortium includes the African Export-Import Bank (Afreximbank), 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 financial commitment underscores confidence in EACOP's potential to transform the East African energy sector.

The project's shareholders comprise TotalEnergies (62%), Uganda National Oil Company Limited (UNOC, 15%), Tanzania Petroleum Development Corporation (TPDC, 15%), and China National Offshore Oil Corporation (CNOOC, 8%). Collectively, they are ensuring the project's progression towards establishing a significant export system aimed at boosting economic development in both Uganda and Tanzania.

Construction of the 1,443-kilometer pipeline—spanning 296 km in Uganda and 1,147 km in Tanzania—has surpassed 55% completion as of March 2025. The project emphasizes safety, environmental sustainability, and community engagement. Currently, over 8,000 Ugandan and Tanzanian citizens are employed, with 400,000 man-hours of training provided to equip the workforce with essential skills. Additionally, $500 million has been injected into local economies through the procurement of goods and services, reinforcing the project's positive economic impact.

Once completed, EACOP will transport up to 246,000 barrels of crude oil per day from Kabaale in Uganda's Hoima District to the Chongoleani Peninsula near Tanzania's Tanga Port. The pipeline features advanced technology, including a 24-inch insulated and buried system, six pumping stations, and two pressure reduction stations. Notably, the marine export terminal in Tanzania will incorporate a 3 MW solar plant, highlighting the project's commitment to integrating renewable energy solutions.

Adhering to high environmental and social standards, EACOP aligns with the International Finance Corporation (IFC) guidelines and the Equator Principles, ensuring socially responsible and environmentally sustainable execution. The project connects to national power grids, primarily hydro-based, to minimize its carbon footprint. EACOP represents more than just an oil pipeline; it symbolizes regional collaboration, economic development, and industrial advancement, offering long-term economic opportunities to communities along its route.