Progress Update: Uganda-Tanzania Oil Pipeline Reaches 47% Completion

The East African Crude Oil Pipeline Project is 47 percent complete as of September 2024, progressing on schedule for a July 2026 completion. With significant investments and local community benefits, the project entails a joint venture between the Tanzanian and Ugandan governments, TotalEnergies, and CNOOC.

As of September 2024, the construction of the East African Crude Oil Pipeline (Eacop) Project, which connects Uganda and Tanzania, has achieved a 47 percent completion rate. The project commenced in February 2022 and involves significant pipe-laying operations across eight regions. It is a collaborative initiative between the governments of Uganda and Tanzania, each owning a 15 percent stake, with TotalEnergies holding 62 percent and CNOOC 8 percent. The total project cost is estimated at $3.5 billion, highlighting the necessity for extensive logistical and environmental planning to mitigate impacts on local communities and ecosystems. Mr. Asiadi Mrutu, the project coordinator from the Tanzania Petroleum Development Corporation, confirmed that the construction is progressing according to schedule, aiming for completion by July 2026. Currently, 9,868 residents have been compensated, amounting to Sh35.1 billion, reflecting the project’s commitment to local communities. Additionally, the ongoing project has created approximately 8,694 temporary and permanent job opportunities for Tanzanians. Local procurements worth Sh82.1 billion have also contributed to the economy, indicating the project’s positive impact on Tanzania. Mr. Mrutu emphasized the significance of safeguarding the project’s infrastructure, with collaboration between residents and regional governments aimed at preventing sabotage. Upon completion, 148 individuals from both Uganda and Tanzania are expected to secure permanent positions. Furthermore, Mr. Mrutu reiterated the commitment to stakeholder engagement, stating that stakeholders have been actively invited to participate in discussions, ensuring their perspectives influence project implementation.

The East African Crude Oil Pipeline (Eacop) Project is a vital infrastructure initiative aimed at transporting crude oil from Uganda to the port of Tanga in Tanzania. This joint venture is a collaboration between the governments of both nations and major stakeholders such as TotalEnergies and CNOOC. Since its inception, the project has been under scrutiny due to its environmental implications and the need for community engagement, making its progress significant both economically and socially.

The East African Crude Oil Pipeline project is on track with 47 percent completion as of September 2024, demonstrating advancements in infrastructure development and community involvement in Uganda and Tanzania. With significant economic contributions through job creation and local procurements, alongside a commitment to stakeholder engagement, the project is expected to enhance government revenues and support regional development. Continued diligence in environmental planning and community compensation will be crucial as the project moves toward its anticipated completion date in July 2026.

Original Source: www.thecitizen.co.tz