The East African Crude Oil Pipeline (EACOP) project has announced the successful completion of its first tranche of external financing.
This milestone marks a significant step forward for the project, designed to transport Ugandan crude oil from Kabaale to Tanga, Tanzania.
According to a statement issued by EACOP Ltd on March 26 2025, the funding was secured through a syndicate of financial institutions, including prominent regional banks.
The Key players in this financial backing include the 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,” the statement read in part.
EACOP Ltd. is a joint venture comprising TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%), and CNOOC (8%).
Furthermore the Construction of the 1,443-kilometer pipeline, spanning 296 kilometers in Uganda and 1,147 kilometers in Tanzania, is reportedly progressing well, with the project exceeding 50% completion by the end of 2024.
“The pipeline, designed to transport 246,000 barrels of crude oil per day, includes six pumping stations, two pressure reduction stations, and a marine export terminal in Tanzania, powered by a 3 MWp solar plant and connected to national hydro-based grids,” the statement revealed.
The project also highlights its positive impact on local economies, stating that over 8,000 Ugandan and Tanzanian citizens are currently employed, with approximately 400,000 man-hours of training provided.
So far according to the statement the project has injected $500 million into local goods and services already.
“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,” the statement noted.
The pipeline is poised to become a world-class oil export infrastructure, facilitating the transport of Uganda’s crude oil to the international market.
EACOP Ltd. emphasized its commitment to environmental and social standards, adhering to guidelines set by the International Finance Corporation and the Equator Principles.
