Oil firms submit application for EACOP construction licence - UG Standard - Latest News
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Oil firms submit application for EACOP construction licence

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 East African Crude Oil Pipeline Company (EACOP) Ltd, the firm spearheading the development of Uganda’s crude oil export pipeline, has applied for a construction licence.

A construction licence 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. It will be the longest heat traced pipeline in the world.

While applying to the Ministry of Energy and Mineral Development on Friday, July 1, EACOP Ltd’s General Manager, Mr Martin Tiffen, said all is set for the work to commence. Also present were Mr John Bosco Habumugisha (EACOP Ltd Deputy General Manager) and Mr Lawrence Ssempanji (Compliance Lead, Uganda). Upon receipt of the application, Mr Honey Malinga, the Ag. Director of Petroleum at the Ministry pledged continued Government of Uganda support to ensure seamless implementation of EACOP.

He said the application will be processed within 180 days. “I want to thank the company for preparing the application for the construction license…the Ministry will process the application in accordance with the law, and we look forward to timely commencement of pipeline construction,” said Mr Malinga.

He urged the company to pay attention and swiftly address the issues raised from time to time by the Government, communities, local leadership, and other stakeholders. 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. Plans are in advanced stages to secure 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.

The East African Crude Oil Pipeline (EACOP) is a transboundary 1,443km crude oil export pipeline that will transport Uganda’s crude oil from Hoima (Uganda) to Tanga port (Tanzania). It will provide an alternative outlet for the produced oil to ensure a return on investment for the licensees and Government.

The pipeline route was selected as more secure, with a cheaper construction cost and a lower tariff. EACOP will be the longest heat traced pipeline in the world due to Uganda’s vicious and waxy crude oil. It will be buried to minimize the environmental impact, with some facilities above the ground designed to ensure minimal environmental and social impact.

The pipeline traverses 296km within Uganda through 10 districts (Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera). In Tanzania, it traverses 1,147km across eight regions (Kagera, Geita, Shinyanga, Tabora, Singida, Dodoma, Manyara and Tanga). The Marine Export Storage Terminal and the Load-Out Facility will be north of Tanga port over the Chongoleani peninsula, Tanzania.

The project will comply with Ugandan and Tanzanian national legislations and international requirements. The development of this pipeline will contribute to opening another route for the country, and other regional partners (Eastern DRC, Burundi, Rwanda, South Sudan), to access the East African coast.

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