East African Crude Oil Pipeline Construction Hits New Milestone
The East African Crude Oil Pipeline (EACOP) project has made significant progress, reaching 47.1% completion, as announced by Tanzania Petroleum Development Corporation (TPDC) Coordinator Asaidi Mrutu.
The remarkable progress brings the pipeline project closer to becoming operational, facilitating the transportation of Ugandan oil to international markets via Tanzania's Port of Tanga.
The EACOP, is joint venture between Tanzania, Uganda, TotalEnergies, and China National Offshore Oil Corporation (CNOOC), is a strategic project aimed at capitalizing on Uganda's substantial oil reserves, estimated at 6.5 billion barrels.
Since its conception, the project has faced multiple regulatory and financing hurdles, which have delayed its implementation. Reports of environmental concerns and human rights violations further caused a backlash among the international community, with nearly all major financiers abandoning the project, prompting Uganda to reach out to China for the project’s funding.
During the announcement, Mrutu highlighted the project's positive impact on local communities, including job creation, business opportunities, and infrastructure development. Over 9,858 Tanzanians have received compensation totaling 35.1 billion Tanzanian shillings, and the project has generated significant revenue for the government.
Additionally, the EACOP has improved the water supply, upgrading the Muheza-Tanga pipeline and providing water to schools and communities. The project has also expanded electricity access by upgrading power substations and constructing new transmission lines.
As the EACOP continues to advance, it is poised to contribute to the economic growth and development of Tanzania and Uganda while strengthening regional energy cooperation.