East African Crude Oil Pipeline Progresses to 47 Percent Completion
As of September 2024, the East African Crude Oil Pipeline (Eacop) Project is 47 percent complete, initiated in February 2022. With a project cost of $3.5 billion, significant progress has been made in pipe-laying activities across eight regions. Compensation for residents has been largely fulfilled, with job creation being a notable benefit. Completion is anticipated by July 2026, maintaining stakeholder engagement throughout the process.
The East African Crude Oil Pipeline (Eacop) Project, which connects Uganda and Tanzania, has reached an impressive 47 percent completion as of September 2024. Initiated in February 2022, the project involves extensive pipe-laying activities across eight districts. This ambitious joint venture is spearheaded by the Tanzanian and Ugandan governments, holding equal stakes of 15 percent, while TotalEnergies and CNOOC control 62 percent and 8 percent shares respectively. The overall investment for the Eacop Project is estimated at $3.5 billion, which has necessitated meticulous logistical and environmental preparations to mitigate potential impacts on local ecosystems and communities. According to Mr. Asiadi Mrutu, the project coordinator for the Tanzania Petroleum Development Corporation (TPDC), progress has been satisfactory and is on schedule for completion in July 2026. Mr. Mrutu emphasized, “We are on the right track, and construction will be completed on schedule, as per the contract.” To date, nearly all eligible residents, precisely 9,868 individuals or 99.3 percent, have received compensation amounting to Sh35.1 billion for their land. Furthermore, the project has generated approximately 8,694 jobs for Tanzanians, contributing significantly to local employment. Mr. Mrutu noted, “The project has brought numerous benefits to Tanzania, including government revenue from permits, fees, and land taxes. Additionally, local services, worth Sh82.1 billion, have been procured for the project.” The commitment to protecting project infrastructure is paramount, as local residents, along with regional governments, actively engage in safeguarding efforts to prevent sabotage. Upon its completion, the Eacop Project is expected to provide permanent employment for 148 workers from both Uganda and Tanzania. The engagement of stakeholders is integral to the project’s success, as expressed by Mr. Mrutu, who stated, “We have invited stakeholders to participate in meetings, seminars, and discussions on important project issues. This ensures that their opinions are considered in the project’s implementation.”
The East African Crude Oil Pipeline (Eacop) Project is a critical infrastructure endeavor linking Uganda’s oil fields to the Tanzanian coast. It represents a collaborative effort involving multiple stakeholders, including the governments of Uganda and Tanzania, along with significant investment from TotalEnergies and CNOOC. The project aims to facilitate oil exportation while addressing local environmental and logistical concerns throughout its construction phase. This ambitious initiative stands to provide extensive economic benefits, including job creation and increased government revenue.
In conclusion, the East African Crude Oil Pipeline Project is progressing efficiently, reaching a substantial 47 percent completion as of September 2024. The joint effort between the governments of Uganda and Tanzania, along with major investments from international stakeholders, is set to yield significant economic benefits while addressing community and environmental concerns. The commitment to stakeholder engagement and local employment underscores the project’s importance in facilitating sustainable growth in the region.
Original Source: www.thecitizen.co.tz
