The East African Crude Oil Pipeline (EACOP) project has reached a critical milestone, with construction now 47.1% complete, bringing it closer to becoming a vital link for transporting Uganda’s oil to international markets via Tanzania.
The EACOP Coordinator from the Tanzania Petroleum Development Corporation (TPDC), Mr Asaidi Mrutu said the implementation of the project has already benefitted the local communities through direct and indirect employment and other related social-economic activities.
The EACOP is a strategic project implemented in collaboration of Tanzania and Uganda governments as well as TotalEnergies and China National Offshore Oil Corporation (CNOOC).
Tanzania TPDC holds 15% share, Uganda 15%, TotalEnergies 62% and CNOOC 8%. The project was initiated due to the discovery of significant oil reserves in Uganda estimated to be around 6.5 billion bbls of crude oil.
The pipeline will transport oil from Uganda’s oil fields to the port of Tanga in Tanzania enabling the export of crude oil to international markets.
Mr Mrutu outlined the benefits achieved from the project so far as compensating 9858 Tanzanians, with a total amount of 35.1 billion/-, equal to 99.3% of the targeted compensation.
He added that Tanzanians are also engaged in business and accessed goods and services with the value of 821.1 billion/-.
He said the water supply project has benefited approximately 20 000 people. Moreover, the project has upgraded the water pipeline from Muheza – Tanga by increasing its diameter from 6 in. to 8 in., which now has the capacity to transport two million litres of water per day.
“This improvement enhances water services in the Muheza District and also enables the connection of water supplies to Sindeni Secondary School and Kibaya Primary School,” he said.
Furthermore, the project has so far created 8694 jobs since its inception in 2022 and enabled the construction of 24 km pipeline with a 10 in. diameter, starting from Chongoleani with a capacity to transport 3 million l/d of oil.
Other benefits include improved electricity access, with the project upgrading power substations in areas such as Kibete (Kagera), Bulyanhulu (Shinyanga), Lusu (Nzega-Tabora) and Majani Mapana (Tanga).
“This construction is also accompanied by the development of new power transmission lines to connect the project areas which allowed local communities to access electricity,” said Mr Mrutu.
He added that the government generated revenue worth 50 billion/- from issuing land lease permits for the project, local authority fees and services such as electricity, water, waste disposal, security and taxes from companies involved in the project.
The EACOP aims to improve the lives of people in both countries by enhancing energy security and shaping the future of energy consumption.
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