Uganda Approves EACOP Construction License

Construction of the world’s longest crude oil heat traced pipeline is finally set to kick off after the Ugandan cabinet gave a go-ahead for its construction six months after the East African Crude Oil Pipeline Company (EACOP) Ltd applied for a construction license.

The construction license will enable the company to kickstart the development of the 1,443km, 24-inch diameter heated and buried crude oil pipeline that will start from Kabaale, Hoima in Uganda to Chongoleani, Tanga in Tanzania.

While applying to the Ministry of Energy and Mineral Development on Friday (1 July 2022), EACOP Ltd.’s General Manager, Mr. Martin TIFFEN, said all is set for the work to commence with the application earlier expected to be processed within 180 days.

The issuance is a big blow to environmentalist who have been fighting the project on environmental grounds and who have persuaded multiple financiers and financial services company to back away from the project.

The Inter-Government Agreement (IGA) for the crude export pipeline was signed in May 2017. The Front-End Engineering Design (FEED) for the EACOP was carried out and approved by the Petroleum Authority of Uganda in October 2020. The Environmental and Social Impact Assessment (ESIA) studies for the EACOP were approved, and the National Environment Management Authority (NEMA) issued the certificate in December 2020.

The licensed upstream oil companies are leading the development of this pipeline in Uganda: Total Energies (62% shares), CNOOC Uganda (8%), Uganda National Oil Company (UNOC) [15%), and the Tanzania Petroleum Development Corporation (TPDC) [15%]. The shareholders announced a Final Investment Decision (FID) on 1 February 2022, signifying  EACOP Ltd.’s commitment to financing the project. The land requirements for the EACOP in Uganda – comprised of construction camps covering 172 acres; pipeline Right of Way (RoW) and orphan land covering 2,745 acres; and feeder roads covering 182 acres is underway and progressing well.

China’s China Petroleum Pipeline Engineering (CPPP) is leading construction works for the project development while Australia’s WorleyParsons Ltd clinched the Engineering, Procurement, and Construction Management (EPCM) tender.

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