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East African Crude Oil Pipeline

April 11, 2024

The East African Crude Oil Pipeline (EACOP), also known as the Uganda–Tanzania Crude Oil Pipeline (UTCOP),[5][4] is a 1,443 km crude oil pipeline in planning since 2013, with a foundation stone nominally under construction since 2017[6] and intended to transport crude oil from Uganda's Tilenga and Kingfisher oil fields to the Port of Tanga, Tanzania on the Indian Ocean.[7]

East African Crude Oil Pipeline
Map of East African Crude Oil Pipeline
Location
CountryUganda & Tanzania
Coordinates01°15′54″S 31°40′33″E / 1.26500°S 31.67583°E / -1.26500; 31.67583
General directionWest to Southeast
FromHoima, Uganda
Passes throughBukoba, Tanzania
ToTanga, Tanzania
General information
Typecrude oil pipeline
PartnersTotalEnergies
Commissioned2025 (Expected)[1][2]
Technical information
Length897 mi (1,444 km)
Maximum discharge216,000 barrels per day[3]
Diameter24[4] in (610 mm)

Uganda wants to develop its oilfields under the two projects Tilenga, operated by TotalEnergies, and Kingfisher by China National Offshore Oil Corporation (CNOOC). In 2021, EACOP was owned by TotalEnergies at 65 percent, Uganda's National Oil Company (UNOC) at 15 percent, Tanzania at 15 per cent and CNOOC at 5 percent. The price of the project has increased to 5 billion $. financing as of January 2024 remained uncertain, as 24 banks have distanced themselves from the project with only two banks namely Standard Bank, through its subsidiary Stanbic Uganda, and Sinosure still advising on the project.

Once completed, the pipeline would be the longest electrically heated crude oil pipeline in the world.[8] Because of the large scale displacement of communities and wildlife, the threat to water resources and contribution to anthropogenic climate change global environmental groups and the EU have been protesting its construction and finance.[9][10] Peaceful activism and protests in Uganda have been met with repression and arrests.

Location edit

As of March 2016, the East African Crude Oil Pipeline (EACOP) was to start in Buseruka sub-county, Hoima District, at the Lake Albert (Africa) basin in Uganda's Western Region. It would travel along the Albertine Rift in a general south-easterly direction to pass through Rakai District in Uganda, Bukoba in Tanzania, loop around the southern shores of Lake Victoria, continue through Shinyanga and Singida, to end on the Chongoleani peninsula near the Port of Tanga, for export[11] a distance of approximately 1,410 kilometres (880 mi).[12]

In 2006, the Kingfisher oil field was discovered on the eastern bank of Lake Albert, the border between Uganda and the Democratic Republic of the Congo, spread over 344 square km in the Albertine Rift basin in western Uganda.[13] The Kingfisher project will be developed by China National Offshore Oil Corporation (CNOOC).

The Tilenga oil fields are located Northeast of the Kingfisher oilfield in the Buliisa and Nwoya districts. TotalEnergies has been planning to operate the Tilenga project (56.6%), in partnership with CNOOC and Uganda's National Oil Company (UNOC) by developing six fields, one of which is located inside Murchison Falls National Park and to drill roughly 400 wells at 31 locations. Buried pipelines would deliver the raw material to an oil treatment plant built in Kasenyi, to separate and treat the fluids.[14]

Overview edit

As of 2015, Uganda proven oil resources (oil in place) exceeded 6.5 billion barrels, of which about 2.2 billion barrels were recoverable.[15]

In 2013, Uganda had agreed to build a joint Uganda–Kenya Crude Oil Pipeline to the Kenyan port of Lamu.[16][17] In 2015, concerns regarding security and cost, however, motivated parallel negotiations with Tanzania regarding a shorter and safer route to Port of Tanga, with the support of TotalEnergies.[18][19]

In April 2016, at the 13th Northern Corridor Heads of State Summit in Kampala, Uganda officially chose the Tanzania route for its crude oil, in preference to the Mombasa or Lamu routes through Kenya. The presidents of Kenya and Rwanda were present, along with representatives from Ethiopia, South Sudan, and Tanzania.[20][21] At the same conference, President Uhuru Kenyatta announced that Kenya would build the Kenya Crude Oil Pipeline on its own, thereby abandoning the Uganda–Kenya Crude Oil Pipeline.[22][23] As of August 2017, the pipeline was planned to have a capacity of 216,000 barrels of crude oil per day.[3] to be 24 inches (61 cm) in diameter, and Uganda was to pay Tanzania US$12.20 for every barrel flowing through the pipeline.[24]

In December 2021, the Ugandan parliament passed the East African Crude Oil Pipeline Special Provisions Bill into Ugandan law which governs the country's participation in the then estimated US$3.5 billion construction, operations and maintenance. Uganda's contribution was estimated at US$293 million, of which US$130 million had been paid in advance. A similar law had been passed by the Parliament of Tanzania, in August 2021.[25]

Cost and timetable edit

As of March 2016, construction was planned to start in August 2016 and expected to last three years at a cost of US$4 billion, providing approximately 15,000 construction jobs and 1,000 to 2,000 permanent jobs.[26] In March 2016, the Daily Monitor newspaper reported that Total E&P was prepared to spend US$4 billion (UGX:13 trillion) to fund EACOP construction.[12] In July 2016, following meetings between delegations led by the oil ministers of Tanzania and Uganda, held in Hoima, it was announced that construction of the 1,443 kilometres (897 mi) pipeline would begin in January 2017,[27] and completion was planned for 2020.[28]

As of August 2017, the construction budget for the 1,445 kilometres (898 mi) pipeline was US$3.5 billion.[3][29]

In September 2020, TotalEnergies and the government of Uganda signed a Host Government Agreement about Total's rights and obligations with respect to the development, construction, and operation of EACOP, at State House Entebbe with an expected final investment decision by the end of 2020.[30][31] Two days later in September 2020, President Yoweri Museveni of Uganda and President John Pombe Magufuli of Tanzania signed an agreement in Chato, Tanzania to jointly construct the 1,445 kilometres (898 mi) East Africa Crude Oil Pipeline, at an estimated cost of US$3.5 billion. Work was scheduled to start by the end of 2020.[32] Construction was expected to last about 36 months.[31]

In October 2020, TotalEnergies and the Government of Tanzania signed a Host Government Agreement to govern the dealings between them regarding the EACOP, as 70 percent will pass through Tanzanian territory. Laying of the pipeline was anticipated to begin during the first quarter of 2021.[33]

In April 2021, presidents Museveni of Uganda and Samia Suluhu of Tanzania met in Entebbe, Uganda with Patrick Pouyanné, the Chairman/CEO of TotalEnergies and Chen Zhuoubiao, President of CNOOC Uganda along with Ugandan and Tanzanian technocrats, lawyers and government ministers, to sign a number of agreements, allowing to begin construction.[34] Construction was slated to begin in July 2021, with first oil anticipated in 2025.[1]

In August 2021, the project cost had risen to US$5 billion, of which $2 billion were to be raised by the owners of the pipeline as equity investment and the remaining $3 billion were to be borrowed from external sources.[35]

Ownership edit

In August 2017, the plan was to raise 70 percent of $3.5b financing capital needed from international lenders and 30 percent through Total, the Anglo-Irish Tullow and China National Offshore Oil Corporation (Cnooc), the Tanzania Petroleum Development Corporation and Uganda National Oil Company; the final investment decision was expected at the end of 2017.[36] Uganda and Tanzania were advised by Standard Bank of South Africa, while Total SA was advised by Sumitomo Mitsui Banking Corporation. The London-based firm law firm Clifford Chance was advising TotalEnergies on legal matters, while CNOOC was advised by the Imperial Bank of China.[36]

In March 2019, Uganda's National Oil Company took 15 percent shares in EACOP, Tanzania 5 per cent, Tullow shares 10 per cent, Chinese CNOOC 35 percent and Total 35 percent.[37]

In April 2020, Tullow Oil Plc sold its "entire interests in Uganda's Lake Albert development project, including the East African Crude Oil Pipeline", to TotalEnergies for US$575 million with all tax liabilities.[38] That ownership changed in April 2021, at the signing of the definitive investment agreements.[39]

East African Crude Oil Pipeline Stock Ownership over time
Rank Name of Owner Ownership in 2019 (%)[37] Ownership in 2020 (%)[38] Ownership in 2021 (%)[39] Notes
1 TotalEnergies
35
45
62
2 China National Offshore Oil Corporation
35
35
8
3 Uganda National Pipeline Company
15
15
15
4 Tanzania Petroleum Development Corporation
5
5
15
5 Tullow Oil Plc
10
0
0
Total
100
100
100

In February 2022, Museveni and the Vice President of Tanzania Philip Mpango, the Executive Chairman/CEO of TotalEnergies, Patrick Pouyanné, the president of CNOOC Uganda Limited, Chen Zhuobiao; Ugandan cabinet ministers, oil technocrats from Uganda and Tanzania and other invited guests gathered at Kololo in Kampala, to witness the signing of the final investment decision by TotalEnergies and CNOOC.[40] Other related parties to the EACOP included the Uganda National Oil Company, Petroleum Authority of Uganda, TotalEnergies Uganda and Tanzania Petroleum Development Corporation.[41]

Funding edit

In May 2023, Sumitomo Mitsui Financial Group said it was not financing the pipeline, as was Standard Chartered,[42] joining 24 banks who have distanced themselves from the project.[43] As of June 2023, only two banks namely the South African Standard Bank, through its subsidiary Stanbic Uganda, and the Industrial and Commercial Bank of China, were financial advisors to the project.[44] In August 2023, it was reported that US$3 billion in loans were expected from Export–Import Bank of China, Islamic Development Bank and Afrexim Bank, while the pipeline shareholders would provide about US$2 billion.[45]

In January 2024 it was reported that Sinosure would only announce its final decision by June 20124.[46]

Construction edit

In 2017, Museveni laid the foundation stone, and the press reported that construction had begun.[6]

In July 2022, the engineering, procurement and construction (EPC) contract was awarded to a joint venture comprising the Australian Worley Limited (formerly Worley Parsons Limited) and China Petroleum Pipeline Engineering. Construction was expected to begin in the first half of 2023 at an estimated cost of between US$3–4 billion with first oil expected in 2025.[47]

In August 2023 the Daily Monitor reported that construction would start in the first quarter of 2024 with Bollore Logistics of France being a sub-contractor, responsible for transport, storage, handling and construction management of construction hardware.[45]

In November 2023, The Independent Uganda reported that the first 100 kilometres (62 mi) of pipe was ready for shipment from the factory in China to Tanzania.[48] At that time construction was expected to start in Q1 2024 and conclude in Q4 2025.[49]

Pipeline insurance edit

In August 2022, Ugandan online media reported that licensing, registration and shareholding paperwork had been submitted, received and approved by the Insurance Regulatory Authority of Uganda for the Insurance Consortium for Oil and Gas Uganda (ICOGU) to insure the EACOP.[50] In February 2023, Ugandan, Tanzanian and an US organisation filed a complaint against the US insurance broker Marsh with the OECD about violating "the guidelines governing the actions of multinational corporations with regard to respect for human rights and the environment".[51]

Oil refinery edit

Main article: Uganda Oil Refinery

As of 2013, the country had planned to build a refinery in the Western Region to meet local and regional demand, and to export the rest via pipeline to the Indian Ocean coast.[52] The US$2.5 billion project was to be developed under a public-private partnership, with 50 percent of the project owned by a private developer and 10 percent owned by Jk Minerals Africa of South Africa, the remaining 40 percent to be distributed among the East African countries.[53](subscription required) In April 2016, Tanzania agreed to buy 8 percent of the shares in the refinery for US$150.4 million.[54]

Social and environmental impact edit

According to a report by the Climate Accountability Institute, EACOP is expected to emit 379 million tonnes of CO2 during 25 years of operation, during peak crude oil flow, in years three through six, the attributed emissions total 34.8 million tonnes per year. However the construction and operation of the pipeline only accounts for 1.8% of the estimate, with 87.22% of estimated emissions coming from eventual product use of the oil and not from the pipeline itself. The estimated total over the 25 year period exceeds France’s national emissions in 2020 at 277 million tonnes, and is slightly less than Australia's at 392 million tonnes.[55] It carries significant global impacts by contributing to global warming.[56]

The pipeline poses high risks of freshwater pollution and degradation, particularly to the Lake Victoria basin, where 400 kilometres of the pipeline will be laid.[57] Once built, EACOP will cause irreversible damage to biodiversity, natural habitats and water sources.[58]

As of July 2023, it is projected that the project will displace 100,000 people in Uganda and Tanzania[59] and put key wildlife habitat and coastal waters at risk.[9] As of 2020, civil society organizations have petitioned funding agencies not to support the project, citing potential social and environmental harm that the pipeline will cause.[10][60] According to an Environmental Impact Assessment and social impact assessment from 2019 commissioned by Oxfam, the pipeline will disproportionately and negatively impact women including loss of income because of displacement, loss of land, loss of power in the household if men earn cash wages, increase in sex work as well as more unpaid care work.[61]: 17 

The #StopEACOP campaign is a global campaign against the construction of the pipeline. Campaigners argue that, as the world's longest heated oil pipeline which will run through many populated areas, it will contribute to poor social outcomes for those displaced.[62] They also mention the significant risk to nature and biodiversity, as the pipeline runs through large areas of savannah, zones of high biodiversity value, mangroves, coastal waters, and protected areas, before arriving at the coast where an oil spill could be dire.[63] Spills are deemed more likely given the route through areas with seismic activity.[9] Critics of the project point to the negative hydrological impact on the surface and groundwater resources of Lake Turkana and also to the fact that the pipeline will add another major source of oil to global markets and thereby contribute to anthropogenic climate change.[64][65]

Repression against critics and protesters in Uganda edit

Critics of the project in Uganda have been met with intimidation, shutdown of their organization (Africa Institute for Energy Governance) and arrests as early as October 2021.[66] In September 2022, the European Parliament had passed a resolution condemning the EACOP project, calling for "the end of the extractive activities in protected and sensitive ecosystems, including the shores of Lake Albert".[67][68] Afterwards, 9 Ugandan students who demonstrated in support of this EU resolution were arrested.[69]

In October 2023, the Guardian reported about 4 dozen students attempting to deliver a petition to parliament who were beaten and 4 of them arrested. In spite of all these reports TotalEnergies has stated it is "unaware of any allegations by human rights and environmental defenders of threats or retaliation".[70]

See also edit

References edit

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  49. ^ Ambrose Niwagaba Katoto (13 November 2023). "EAACOP Construction Work Underway In Uganda". New Vision. Kampala, Uganda. Retrieved 13 November 2023.
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  58. ^ . Environment. 2022-09-07. Archived from the original on September 7, 2022. Retrieved 2023-03-02.
  59. ^ Horne, Felix (2023-07-10). ""Our Trust is Broken"". Human Rights Watch. Retrieved 2023-12-09.
  60. ^ "SA's Standard Bank Group Faces Protest Over Pipeline Funding Plan". Naija247news. 2020-06-24. Retrieved 2020-07-05.
  61. ^ Christina Hill (August 2019). "GENDER ANALYSIS OF EAST AFRICA CRUDE OIL PIPELINE, Environmental and Social Impact Assessment" (PDF).
  62. ^ "FOR PEOPLE. Stop the East African Crude Oil Pipeline". #StopEACOP. Retrieved 2022-05-31.
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  67. ^ "JOINT MOTION FOR A RESOLUTION on violations of human rights in Uganda and Tanzania linked to investments in fossil fuels projects - RC-B9-0409/2022". www.europarl.europa.eu. Retrieved 2023-03-02.
  68. ^ "European parliament adopts a resolution condemning Total's EACOP project". www.amisdelaterre.org. 2022-09-15. Retrieved 2023-11-25.
  69. ^ Juliet Kigongo (2022-10-08). "Environment activists demand release of nine students remanded over EACOP protest". The Monitor. Retrieved 2023-12-09.
  70. ^ Lakhani, Nina; reporter, Nina Lakhani climate justice (2023-10-19). "'Very disturbing': crackdown on oil pipeline protests in Uganda concerns UN rights expert". The Guardian. ISSN 0261-3077. Retrieved 2023-12-09.

External links edit

  • Official Website
  • "Design of EACOP integrates adequate environmental protection, safety measures". New Vision. 15 July 2022. Retrieved 2023-03-01.
  • East African Crude Oil Pipeline at the Global Energy Monitor.
  • "Pipeline dreams: Inside the Uganda - Tanzania oil pipeline talks". 2021-02-01. Retrieved 2023-03-01. As of 18 March 2019.
  • Lydia Shekighenda (25 August 2016). "East Africa: DR Congo Shows Interest As Uganda-Tanga Port Oil Pipeline Preps in Top Gear". Tanzania Daily News (Dar es Salaam).
  • "Uganda, Tanzania discuss oil pipeline". Monitor. 2021-01-17. Retrieved 2023-03-01.
  • Gerard Kreeft (November 17, 2022). "Will the East African Crude Oil Pipeline (EACOP) ever be built?". ieefa.org. Retrieved 2023-03-01.
  • Ogwang, Tom; Vanclay, Frank (2021-04-01). "Cut-off and forgotten?: Livelihood disruption, social impacts and food insecurity arising from the East African Crude Oil Pipeline". Energy Research & Social Science. 74: 101970. doi:10.1016/j.erss.2021.101970. ISSN 2214-6296. S2CID 233587520.
  • Akoli Atine, Joy; Ayebare, Clare; Bogrand, Andrew; Brodeur, Caroline; Mbenna, Devota; Sellwood, Scott A.; Twesigye, Bashir (2020-09-10). "Empty Promises Down the Line? A Human Rights Impact Assessment of the East African Crude Oil Pipeline". Oxfam. doi:10.21201/2020.6423. S2CID 235082166. Retrieved 2023-03-01.

April 11, 2024
east, african, crude, pipeline, eacop, also, known, uganda, tanzania, crude, pipeline, utcop, crude, pipeline, planning, since, 2013, with, foundation, stone, nominally, under, construction, since, 2017, intended, transport, crude, from, uganda, tilenga, kingf. The East African Crude Oil Pipeline EACOP also known as the Uganda Tanzania Crude Oil Pipeline UTCOP 5 4 is a 1 443 km crude oil pipeline in planning since 2013 with a foundation stone nominally under construction since 2017 6 and intended to transport crude oil from Uganda s Tilenga and Kingfisher oil fields to the Port of Tanga Tanzania on the Indian Ocean 7 East African Crude Oil PipelineMap of East African Crude Oil PipelineLocationCountryUganda amp TanzaniaCoordinates01 15 54 S 31 40 33 E 1 26500 S 31 67583 E 1 26500 31 67583General directionWest to SoutheastFromHoima UgandaPasses throughBukoba TanzaniaToTanga TanzaniaGeneral informationTypecrude oil pipelinePartnersTotalEnergiesCommissioned2025 Expected 1 2 Technical informationLength897 mi 1 444 km Maximum discharge216 000 barrels per day 3 Diameter24 4 in 610 mm Uganda wants to develop its oilfields under the two projects Tilenga operated by TotalEnergies and Kingfisher by China National Offshore Oil Corporation CNOOC In 2021 EACOP was owned by TotalEnergies at 65 percent Uganda s National Oil Company UNOC at 15 percent Tanzania at 15 per cent and CNOOC at 5 percent The price of the project has increased to 5 billion financing as of January 2024 remained uncertain as 24 banks have distanced themselves from the project with only two banks namely Standard Bank through its subsidiary Stanbic Uganda and Sinosure still advising on the project Once completed the pipeline would be the longest electrically heated crude oil pipeline in the world 8 Because of the large scale displacement of communities and wildlife the threat to water resources and contribution to anthropogenic climate change global environmental groups and the EU have been protesting its construction and finance 9 10 Peaceful activism and protests in Uganda have been met with repression and arrests Contents 1 Location 2 Overview 3 Cost and timetable 3 1 Ownership 3 2 Funding 4 Construction 5 Pipeline insurance 6 Oil refinery 7 Social and environmental impact 8 Repression against critics and protesters in Uganda 9 See also 10 References 11 External linksLocation editAs of March 2016 the East African Crude Oil Pipeline EACOP was to start in Buseruka sub county Hoima District at the Lake Albert Africa basin in Uganda s Western Region It would travel along the Albertine Rift in a general south easterly direction to pass through Rakai District in Uganda Bukoba in Tanzania loop around the southern shores of Lake Victoria continue through Shinyanga and Singida to end on the Chongoleani peninsula near the Port of Tanga for export 11 a distance of approximately 1 410 kilometres 880 mi 12 In 2006 the Kingfisher oil field was discovered on the eastern bank of Lake Albert the border between Uganda and the Democratic Republic of the Congo spread over 344 square km in the Albertine Rift basin in western Uganda 13 The Kingfisher project will be developed by China National Offshore Oil Corporation CNOOC The Tilenga oil fields are located Northeast of the Kingfisher oilfield in the Buliisa and Nwoya districts TotalEnergies has been planning to operate the Tilenga project 56 6 in partnership with CNOOC and Uganda s National Oil Company UNOC by developing six fields one of which is located inside Murchison Falls National Park and to drill roughly 400 wells at 31 locations Buried pipelines would deliver the raw material to an oil treatment plant built in Kasenyi to separate and treat the fluids 14 Overview editAs of 2015 Uganda proven oil resources oil in place exceeded 6 5 billion barrels of which about 2 2 billion barrels were recoverable 15 In 2013 Uganda had agreed to build a joint Uganda Kenya Crude Oil Pipeline to the Kenyan port of Lamu 16 17 In 2015 concerns regarding security and cost however motivated parallel negotiations with Tanzania regarding a shorter and safer route to Port of Tanga with the support of TotalEnergies 18 19 In April 2016 at the 13th Northern Corridor Heads of State Summit in Kampala Uganda officially chose the Tanzania route for its crude oil in preference to the Mombasa or Lamu routes through Kenya The presidents of Kenya and Rwanda were present along with representatives from Ethiopia South Sudan and Tanzania 20 21 At the same conference President Uhuru Kenyatta announced that Kenya would build the Kenya Crude Oil Pipeline on its own thereby abandoning the Uganda Kenya Crude Oil Pipeline 22 23 As of August 2017 the pipeline was planned to have a capacity of 216 000 barrels of crude oil per day 3 to be 24 inches 61 cm in diameter and Uganda was to pay Tanzania US 12 20 for every barrel flowing through the pipeline 24 In December 2021 the Ugandan parliament passed the East African Crude Oil Pipeline Special Provisions Bill into Ugandan law which governs the country s participation in the then estimated US 3 5 billion construction operations and maintenance Uganda s contribution was estimated at US 293 million of which US 130 million had been paid in advance A similar law had been passed by the Parliament of Tanzania in August 2021 25 Cost and timetable editAs of March 2016 construction was planned to start in August 2016 and expected to last three years at a cost of US 4 billion providing approximately 15 000 construction jobs and 1 000 to 2 000 permanent jobs 26 In March 2016 the Daily Monitor newspaper reported that Total E amp P was prepared to spend US 4 billion UGX 13 trillion to fund EACOP construction 12 In July 2016 following meetings between delegations led by the oil ministers of Tanzania and Uganda held in Hoima it was announced that construction of the 1 443 kilometres 897 mi pipeline would begin in January 2017 27 and completion was planned for 2020 28 As of August 2017 the construction budget for the 1 445 kilometres 898 mi pipeline was US 3 5 billion 3 29 In September 2020 TotalEnergies and the government of Uganda signed a Host Government Agreement about Total s rights and obligations with respect to the development construction and operation of EACOP at State House Entebbe with an expected final investment decision by the end of 2020 30 31 Two days later in September 2020 President Yoweri Museveni of Uganda and President John Pombe Magufuli of Tanzania signed an agreement in Chato Tanzania to jointly construct the 1 445 kilometres 898 mi East Africa Crude Oil Pipeline at an estimated cost of US 3 5 billion Work was scheduled to start by the end of 2020 32 Construction was expected to last about 36 months 31 In October 2020 TotalEnergies and the Government of Tanzania signed a Host Government Agreement to govern the dealings between them regarding the EACOP as 70 percent will pass through Tanzanian territory Laying of the pipeline was anticipated to begin during the first quarter of 2021 33 In April 2021 presidents Museveni of Uganda and Samia Suluhu of Tanzania met in Entebbe Uganda with Patrick Pouyanne the Chairman CEO of TotalEnergies and Chen Zhuoubiao President of CNOOC Uganda along with Ugandan and Tanzanian technocrats lawyers and government ministers to sign a number of agreements allowing to begin construction 34 Construction was slated to begin in July 2021 with first oil anticipated in 2025 1 In August 2021 the project cost had risen to US 5 billion of which 2 billion were to be raised by the owners of the pipeline as equity investment and the remaining 3 billion were to be borrowed from external sources 35 Ownership edit In August 2017 the plan was to raise 70 percent of 3 5b financing capital needed from international lenders and 30 percent through Total the Anglo Irish Tullow and China National Offshore Oil Corporation Cnooc the Tanzania Petroleum Development Corporation and Uganda National Oil Company the final investment decision was expected at the end of 2017 36 Uganda and Tanzania were advised by Standard Bank of South Africa while Total SA was advised by Sumitomo Mitsui Banking Corporation The London based firm law firm Clifford Chance was advising TotalEnergies on legal matters while CNOOC was advised by the Imperial Bank of China 36 In March 2019 Uganda s National Oil Company took 15 percent shares in EACOP Tanzania 5 per cent Tullow shares 10 per cent Chinese CNOOC 35 percent and Total 35 percent 37 In April 2020 Tullow Oil Plc sold its entire interests in Uganda s Lake Albert development project including the East African Crude Oil Pipeline to TotalEnergies for US 575 million with all tax liabilities 38 That ownership changed in April 2021 at the signing of the definitive investment agreements 39 East African Crude Oil Pipeline Stock Ownership over time Rank Name of Owner Ownership in 2019 37 Ownership in 2020 38 Ownership in 2021 39 Notes1 TotalEnergies 35 45 622 China National Offshore Oil Corporation 35 35 83 Uganda National Pipeline Company 15 15 154 Tanzania Petroleum Development Corporation 5 5 155 Tullow Oil Plc 10 0 0Total 100 100 100In February 2022 Museveni and the Vice President of Tanzania Philip Mpango the Executive Chairman CEO of TotalEnergies Patrick Pouyanne the president of CNOOC Uganda Limited Chen Zhuobiao Ugandan cabinet ministers oil technocrats from Uganda and Tanzania and other invited guests gathered at Kololo in Kampala to witness the signing of the final investment decision by TotalEnergies and CNOOC 40 Other related parties to the EACOP included the Uganda National Oil Company Petroleum Authority of Uganda TotalEnergies Uganda and Tanzania Petroleum Development Corporation 41 Funding edit In May 2023 Sumitomo Mitsui Financial Group said it was not financing the pipeline as was Standard Chartered 42 joining 24 banks who have distanced themselves from the project 43 As of June 2023 only two banks namely the South African Standard Bank through its subsidiary Stanbic Uganda and the Industrial and Commercial Bank of China were financial advisors to the project 44 In August 2023 it was reported that US 3 billion in loans were expected from Export Import Bank of China Islamic Development Bank and Afrexim Bank while the pipeline shareholders would provide about US 2 billion 45 In January 2024 it was reported that Sinosure would only announce its final decision by June 20124 46 Construction editIn 2017 Museveni laid the foundation stone and the press reported that construction had begun 6 In July 2022 the engineering procurement and construction EPC contract was awarded to a joint venture comprising the Australian Worley Limited formerly Worley Parsons Limited and China Petroleum Pipeline Engineering Construction was expected to begin in the first half of 2023 at an estimated cost of between US 3 4 billion with first oil expected in 2025 47 In August 2023 the Daily Monitor reported that construction would start in the first quarter of 2024 with Bollore Logistics of France being a sub contractor responsible for transport storage handling and construction management of construction hardware 45 In November 2023 The Independent Uganda reported that the first 100 kilometres 62 mi of pipe was ready for shipment from the factory in China to Tanzania 48 At that time construction was expected to start in Q1 2024 and conclude in Q4 2025 49 Pipeline insurance editIn August 2022 Ugandan online media reported that licensing registration and shareholding paperwork had been submitted received and approved by the Insurance Regulatory Authority of Uganda for the Insurance Consortium for Oil and Gas Uganda ICOGU to insure the EACOP 50 In February 2023 Ugandan Tanzanian and an US organisation filed a complaint against the US insurance broker Marsh with the OECD about violating the guidelines governing the actions of multinational corporations with regard to respect for human rights and the environment 51 Oil refinery editMain article Uganda Oil Refinery As of 2013 the country had planned to build a refinery in the Western Region to meet local and regional demand and to export the rest via pipeline to the Indian Ocean coast 52 The US 2 5 billion project was to be developed under a public private partnership with 50 percent of the project owned by a private developer and 10 percent owned by Jk Minerals Africa of South Africa the remaining 40 percent to be distributed among the East African countries 53 subscription required In April 2016 Tanzania agreed to buy 8 percent of the shares in the refinery for US 150 4 million 54 Social and environmental impact editAccording to a report by the Climate Accountability Institute EACOP is expected to emit 379 million tonnes of CO2 during 25 years of operation during peak crude oil flow in years three through six the attributed emissions total 34 8 million tonnes per year However the construction and operation of the pipeline only accounts for 1 8 of the estimate with 87 22 of estimated emissions coming from eventual product use of the oil and not from the pipeline itself The estimated total over the 25 year period exceeds France s national emissions in 2020 at 277 million tonnes and is slightly less than Australia s at 392 million tonnes 55 It carries significant global impacts by contributing to global warming 56 The pipeline poses high risks of freshwater pollution and degradation particularly to the Lake Victoria basin where 400 kilometres of the pipeline will be laid 57 Once built EACOP will cause irreversible damage to biodiversity natural habitats and water sources 58 As of July 2023 it is projected that the project will displace 100 000 people in Uganda and Tanzania 59 and put key wildlife habitat and coastal waters at risk 9 As of 2020 civil society organizations have petitioned funding agencies not to support the project citing potential social and environmental harm that the pipeline will cause 10 60 According to an Environmental Impact Assessment and social impact assessment from 2019 commissioned by Oxfam the pipeline will disproportionately and negatively impact women including loss of income because of displacement loss of land loss of power in the household if men earn cash wages increase in sex work as well as more unpaid care work 61 17 The StopEACOP campaign is a global campaign against the construction of the pipeline Campaigners argue that as the world s longest heated oil pipeline which will run through many populated areas it will contribute to poor social outcomes for those displaced 62 They also mention the significant risk to nature and biodiversity as the pipeline runs through large areas of savannah zones of high biodiversity value mangroves coastal waters and protected areas before arriving at the coast where an oil spill could be dire 63 Spills are deemed more likely given the route through areas with seismic activity 9 Critics of the project point to the negative hydrological impact on the surface and groundwater resources of Lake Turkana and also to the fact that the pipeline will add another major source of oil to global markets and thereby contribute to anthropogenic climate change 64 65 Repression against critics and protesters in Uganda editCritics of the project in Uganda have been met with intimidation shutdown of their organization Africa Institute for Energy Governance and arrests as early as October 2021 66 In September 2022 the European Parliament had passed a resolution condemning the EACOP project calling for the end of the extractive activities in protected and sensitive ecosystems including the shores of Lake Albert 67 68 Afterwards 9 Ugandan students who demonstrated in support of this EU resolution were arrested 69 In October 2023 the Guardian reported about 4 dozen students attempting to deliver a petition to parliament who were beaten and 4 of them arrested In spite of all these reports TotalEnergies has stated it is unaware of any allegations by human rights and environmental defenders of threats or retaliation 70 See also edit nbsp Uganda portal nbsp Energy portalPetroleum Authority of Uganda Kenya Uganda Rwanda Petroleum Products Pipeline Hoima Kampala Petroleum Products Pipeline Tanzania Uganda Natural Gas PipelineReferences edit a b Daily Monitor 12 April 2021 Uganda s first oil production now set for early 2025 The Citizen Tanzania Quoting Daily Monitor The Citizen Tanzania Dar es Salaam Retrieved 12 April 2021 Nicholas Bariyo 12 April 2021 Total Expects First Oil From Ugandan Project in 2025 Annecy France Market Screener Retrieved 12 April 2021 a b c The Independent Uganda 6 August 2017 Uganda Museveni Magufuli Lay Foundation Stone for Oil Pipeline The Independent Uganda via AllAfrica com Kampala Retrieved 8 August 2017 a b Halima Abdallah 5 September 2017 Uganda seeks more land for oil pipeline The EastAfrican Nairobi Retrieved 5 September 2017 Editorial 9 August 2017 Getting crude oil pipeline off ground is great leap Daily Monitor Kampala Archived from the original on 28 November 2018 Retrieved 9 August 2017 a b The EastAfrican 5 August 2017 Magufuli Museveni lay foundation stone for crude oil pipeline The EastAfrican Nairobi Retrieved 5 August 2017 Elias Biryabarema and Fumbuka Ng wanakilala 2 March 2016 Uganda Tanzania plan oil pipeline Reuters com Retrieved 3 March 2016 The Economist 5 February 2022 A big Ugandan oil project is progressing at last The Economist Retrieved 3 February 2022 a b c Pearce Fred May 21 2020 A Major Oil Pipeline Project Strikes Deep at the Heart of Africa Yale E360 Retrieved 2020 07 05 a b Karashani Bob April 11 2020 AfDB says no plans to fund Uganda Tanzania pipeline The East African Retrieved 2020 07 05 Musisi Frederic 7 March 2016 Oil pipeline Which way for Uganda Daily Monitor Kampala Retrieved 7 March 2016 a b Frederic Musisi 16 March 2016 Total readies UShs13 trillion for oil pipeline development Daily Monitor Kampala Uganda Archived from the original on 7 November 2018 Retrieved 16 March 2016 Kingfisher Oil Field Development Lake Albert Rift Basin Uganda ns energybusiness 2020 Retrieved 2023 03 08 TotalEnergies nd Tilenga and EACOP acting transparently TotalEnergies com Retrieved 2023 05 24 Patey Luke October 2015 Oil in Uganda Hard bargaining and complex politics in East Africa PDF Oxford Oxford Institute for Energy Studies Retrieved 28 April 2016 Biryabarema Elias 25 June 2013 Uganda agrees to plan for oil pipeline to new Kenya port Reuters com Retrieved 28 April 2016 Bariyo Nicholas 25 June 2013 Uganda Kenya Agree to Construct Crude export Pipeline to Port Lamu Wall Street Journal Quoting Dow Jones Newswires New York City Archived from the original on 6 July 2013 Retrieved 28 April 2016 a href Template Cite web html title Template Cite web cite web a CS1 maint unfit URL link Allan Olingo and James Anyanzwa 17 October 2015 Regional power play in tussle over new route of Uganda oil pipeline The EastAfrican Nairobi Archived from the original on 8 September 2017 Retrieved 3 March 2016 Abdalah Halima 13 September 2015 Oil firms prefer Tanga pipeline route to Lamu The EastAfrican Nairobi Retrieved 3 March 2016 Musisi Frederic 23 April 2016 Uganda chooses Tanga route for oil pipeline Daily Monitor Kampala Retrieved 23 April 2016 Musisi Frederick 26 April 2016 Transporting oil to Tanzania to cost Shs40 000 per barrel Daily Monitor Kampala Retrieved 26 April 2016 PSCU 23 April 2016 Kenya will build own pipeline Uhuru tells EAC summit Daily Nation Nairobi Retrieved 26 April 2016 Ligami Christabel 16 April 2016 As Uganda chooses Tanzania pipeline route Kenya to go it alone African Review Nairobi Archived from the original on 17 April 2016 Retrieved 26 April 2016 Barigaba Julius 6 March 2017 Museveni s visit to Dar rescues oil pipeline deal sets project timelines The EastAfrican Nairobi Retrieved 6 August 2017 Johnathan Kamoga 10 December 2021 Ugandan Parliament Passes EACOP Law The EastAfrican Nairobi Kenya Retrieved 10 December 2021 Mwakyusa Alvar 8 March 2016 East Africa Construction of Uganda Tanga Port Oil Pipeline Starts August Tanzania Daily News via AllAfrica com Dar es Salaam Retrieved 8 March 2016 Francis Mugerwa 8 July 2016 Building of Hoima Tanzania oil pipeline will start in January The EastAfrican Nairobi Kenya Retrieved 12 July 2016 Tanzania aims to complete oil pipeline from Uganda in 2020 The East African Quoting Reuters Reuters 3 August 2016 Retrieved 3 August 2016 Christopher Kidanka 6 August 2017 Tanzania ready to take up pipeline contracts The EastAfrican Nairobi Retrieved 6 August 2017 New Vision 11 September 2020 Uganda Total sign key oil pipeline agreement New Vision Kampala Retrieved 13 September 2020 a b Uganda Total reach agreement bringing crude pipeline construction closer Mumbai The Economic Times Reuters 12 September 2020 Retrieved 11 October 2020 Agence France Presse 14 September 2020 Magufuli Museveni sign deal on 3 5bn crude pipeline The EastAfrican Nairobi Retrieved 30 October 2020 Zephania Ubwani 27 October 2020 Tanzania Total sign agreement for East African Crude Oil Pipeline The Citizen Tanzania Dar es Salaam Retrieved 31 October 2020 Frederic Musisi 11 April 2021 New Dawn As Govt Oil Firms Seal Deal To Kick Off Production Daily Monitor Kampala Retrieved 12 April 2021 Julius Barigaba 21 August 2021 Cost of Hoima Tanga pipeline hits 5b as risk averse banks walk away from project The EastAfrican Nairobi Kenya Retrieved 22 August 2021 a b Musisi Frederic 16 August 2017 Uganda TZ target flexible European pipeline funding Daily Monitor Kampala Retrieved 16 August 2017 a b Halima Abdallah 14 March 2019 Uganda oil pipeline to wait for a while The EastAfrican Nairobi Retrieved 18 March 2019 a b Daily Monitor 23 April 2020 Total To Acquire Tullow Interests In Uganda At 575 Million Daily Monitor Kampala Retrieved 24 April 2020 a b Julius Barigaba 3 May 2021 EACOP s Financing Blues As Lenders Desert 3 5B Project The EastAfrican Nairobi Retrieved 3 May 2021 Muhamadi Byemboijana 1 February 2022 Oil amp Gas The Long Awaited FID Is Here SoftPower Kampala Uganda Retrieved 1 February 2022 Joseph Kizza 1 February 2022 As it happened Final investment decision on oil announced New Vision Kampala Uganda Retrieved 1 February 2022 Sumitomo Mitsui Rules Out Funding 5 Billion Uganda Oil Pipeline Bloomberg com 2023 05 16 Retrieved 2023 05 24 Standard Chartered refuses financing for controversial 5 billion Ugandan oil pipeline Banktrack 2023 05 02 Retrieved 2023 06 12 Who s Banking on the East African Crude Oil Pipeline StopEACOP 2023 06 12 Retrieved 2023 06 12 a b Paul Murungi 30 August 2023 Oil pipeline construction set to start early next year Daily Monitor Kampala Uganda Retrieved 31 August 2023 Eacop partners race against time to close 3bn financing deal with China lenders 2024 01 15 Retrieved 2024 03 02 Frederic Musisi 4 July 2022 Oil pipeline firm applies for construction license Daily Monitor Kampala Uganda Retrieved 4 July 2022 The Independent 1 November 2023 EACOP crude oil pipelines ready on the way to Uganda The Independent Uganda Kampala Uganda Retrieved 1 November 2023 Ambrose Niwagaba Katoto 13 November 2023 EAACOP Construction Work Underway In Uganda New Vision Kampala Uganda Retrieved 13 November 2023 Kenneth Kazibwe 19 August 2022 East African oil pipeline finally gets insured Nile Post Uganda Kampala Uganda Retrieved 2 August 2022 Laurence Caramel 2023 02 08 Uganda s EACOP pipeline Insurer Marsh targeted by complaint filed with OECD Le Monde fr Retrieved 2023 03 01 Ouga Samuel 14 August 2013 Uganda s Oil Refinery An Opportunity for transformation New Vision Kampala Retrieved 3 March 2016 Kasita Ibrahim 19 September 2013 East Africa EAC States to Invest 40 Percent in Oil Refinery New Vision via AllAfrica com Kampala Retrieved 3 August 2016 Ludger Kasumuni 30 April 2016 TZ to spend Sh300bn on buying stake in Uganda refinery The Citizen Tanzania Dar Es Salaam Archived from the original on 24 June 2016 Retrieved 3 August 2016 https climateaccountability org wp content uploads 2022 10 EACOP PR 27Oct22 pdf The east African crude oil pipeline future ecocide Stop Ecocide International Retrieved 2023 03 02 Mugonza Andrew 2021 11 10 How will East African Crude Oil Pipeline affect the environment wearerestless org Economic lifeline or climate peril East African pipeline heats up Environment 2022 09 07 Archived from the original on September 7 2022 Retrieved 2023 03 02 Horne Felix 2023 07 10 Our Trust is Broken Human Rights Watch Retrieved 2023 12 09 SA s Standard Bank Group Faces Protest Over Pipeline Funding Plan Naija247news 2020 06 24 Retrieved 2020 07 05 Christina Hill August 2019 GENDER ANALYSIS OF EAST AFRICA CRUDE OIL PIPELINE Environmental and Social Impact Assessment PDF FOR PEOPLE Stop the East African Crude Oil Pipeline StopEACOP Retrieved 2022 05 31 HOME StopEACOP Retrieved 2022 05 31 McKibben Bill 20 September 2020 With a New Pipeline in East Africa an Oil Company Flouts France s Leadership on Climate The New Yorker Retrieved 31 May 2022 FOR NATURE Stop the East African Crude Oil Pipeline StopEACOP Retrieved 2022 05 31 AFP 2021 10 24 Environment watchdogs condemn arrest of Ugandan activists The Monitor Retrieved 2023 12 09 JOINT MOTION FOR A RESOLUTION on violations of human rights in Uganda and Tanzania linked to investments in fossil fuels projects RC B9 0409 2022 www europarl europa eu Retrieved 2023 03 02 European parliament adopts a resolution condemning Total s EACOP project www amisdelaterre org 2022 09 15 Retrieved 2023 11 25 Juliet Kigongo 2022 10 08 Environment activists demand release of nine students remanded over EACOP protest The Monitor Retrieved 2023 12 09 Lakhani Nina reporter Nina Lakhani climate justice 2023 10 19 Very disturbing crackdown on oil pipeline protests in Uganda concerns UN rights expert The Guardian ISSN 0261 3077 Retrieved 2023 12 09 External links editOfficial Website Design of EACOP integrates adequate environmental protection safety measures New Vision 15 July 2022 Retrieved 2023 03 01 East African Crude Oil Pipeline at the Global Energy Monitor Pipeline dreams Inside the Uganda Tanzania oil pipeline talks 2021 02 01 Retrieved 2023 03 01 As of 18 March 2019 Lydia Shekighenda 25 August 2016 East Africa DR Congo Shows Interest As Uganda Tanga Port Oil Pipeline Preps in Top Gear Tanzania Daily News Dar es Salaam Uganda Tanzania discuss oil pipeline Monitor 2021 01 17 Retrieved 2023 03 01 Gerard Kreeft November 17 2022 Will the East African Crude Oil Pipeline EACOP ever be built ieefa org Retrieved 2023 03 01 Ogwang Tom Vanclay Frank 2021 04 01 Cut off and forgotten Livelihood disruption social impacts and food insecurity arising from the East African Crude Oil Pipeline Energy Research amp Social Science 74 101970 doi 10 1016 j erss 2021 101970 ISSN 2214 6296 S2CID 233587520 Akoli Atine Joy Ayebare Clare Bogrand Andrew Brodeur Caroline Mbenna Devota Sellwood Scott A Twesigye Bashir 2020 09 10 Empty Promises Down the Line A Human Rights Impact Assessment of the East African Crude Oil Pipeline Oxfam doi 10 21201 2020 6423 S2CID 235082166 Retrieved 2023 03 01 Retrieved from https en wikipedia org w index php title East African Crude Oil Pipeline amp 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