The East African Crude Oil Pipeline Limited, has just announced that it has closed the first tranche of external financing for the project, provided by a syndicate of financial institutions.
EACOP Limited, is the company in charge of the construction and future operation of the East African Crude Oil Pipeline project from Kabaale in Uganda to Tanga in Tanzania.
The firm has thus closed the deal with financial institutions such as African Export Import Bank (Afreximbank), The Standard Bank of South Africa Limited, Stanbic Bank Uganda Limited, KCB Bank Uganda and The Islamic Corporation for the Development of the Private Sector (ICD).
The successful closing of this first tranche of external financing represents a significant milestone for EACOP and its shareholders TotalEnergies (62 percent), Uganda National Oil Company Limited (UNOC – 15 percent), Tanzania Petroleum Development Corporation (TPDC) at 15 percent and the China National Offshore Oil Corporation (CNOOC) with 8 percent.
It also demonstrates the support of financial institutions on this transformative regional infrastructure.
In Uganda and Tanzania, the construction of the EACOP pipeline is progressing well with a continued focus on safety, environmental sustainability, and local community engagement.
Uganda targets a 2027 start for oil exports via the USD 4 billion East African Crude Oil Pipeline (EACOP).
The 1,443 km pipeline will transport crude from Uganda’s oil fields to Tanzania, making it the world’s longest heated crude oil pipeline.
The overall project progress exceeded 50 percent by early 2025.
More than 8,000 Ugandan and Tanzanian residents are employed on the project, about 400,000 man hours of training have been provided so far and USD 500 million spent locally on goods and services.
A world class oil export infrastructure
The East African Crude Oil Pipeline is an oil export infrastructure that will pump crude oil from Kabaale in Hoima region of Uganda to the Chongoleani peninsula near Tanga along the Indian Ocean coastline in Tanzania for export to the international market.
Upon completion, it will have the capacity to transport 246,000 barrels of crude oil per day.
This major export system includes 1,443 kilometers (296 km in Uganda and 1,147 km in Tanzania) of insulated and buried 24-inch pipeline, 6 pumping stations, two pressure reduction stations and a marine export terminal in Tanzania (with a 3 MWp solar plant).
All along connected to national primarily hydro- based grids for power supply.
The project is committed to the highest Environment and Social standards such as those of the International Finance Corporation and the Equator Principles.