KAMPALA – EACOP Ltd., the company responsible for the development of the East African Crude Oil Pipeline, has announced the successful closure of the first tranche of external financing for the project. This significant milestone marks a major step forward for the project, which will transport crude oil from Uganda to Tanzania for export to the international market.
The financing agreement was secured with a syndicate of financial institutions, including 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).
“This achievement demonstrates the confidence of financial institutions in the EACOP project and its potential to drive economic growth and development in the region,” said EACOP Ltd in a statement.
The project, which is being developed by TotalEnergies, Uganda National Oil Company Limited (UNOC), Tanzania Petroleum Development Corporation (TPDC), and CNOOC, has made significant progress in recent months. Construction of the pipeline is progressing well, with a focus on safety, environmental sustainability, and local community engagement.
Key highlights of the project’s progress include:
- Overall project progress exceeded 50% by the end of 2024.
- Over 8,000 Ugandan and Tanzanian citizens are employed on the project.
- More than 400,000 man-hours of training have been provided to local workers.
- Approximately $500 million has been spent locally on goods and services.
The East African Crude Oil Pipeline is a world-class oil export infrastructure that will transport Uganda’s crude oil to the international market. The pipeline will have a capacity to transport 246,000 barrels of crude oil per day and will include 1,443 km of insulated and buried pipeline, six pumping stations, two pressure reduction stations, and a marine export terminal in Tanzania.
The project is committed to the highest environmental and social standards, including those of the International Finance Corporation and the Equator Principles.
With the successful closure of the first tranche of external financing, EACOP Ltd. is poised to drive the project forward, creating jobs, stimulating economic growth, and positioning East Africa as a major player in the global oil market.
