With the delivery of the last batch of pipes for the 1,445-kilometre East African Crude Oil Pipeline (EACOP), Uganda’s First Oil, that marks onset of the production stage, is in sight.
The 2.3-billion-dollar EACOP is a joint venture between the Government of Uganda through the Uganda National Oil Company, Total Energies Uganda, and China National Offshore Oil Company (CNOOC).
Shipment of the crude oil pipes started in December 2023 and has been concluded with the delivery of the last 80 kilomentres of pipes. Eighteen shipments from Panyu Chu Kong Steel Pipe Company, the manufacturers, were made on September 27 in Dar-es-Salaam Port in Tanzania.
According to the Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Batebe, the shipment of the last batch of the pipes means Uganda’s last stretch to First Oil is on course.
She said, “The arrival of the pipes means the planned production of oil remains on track for next year”, adding that the oil project has injected in significant foreign direct investment and will enable the country to improve its key infrastructure.
In 2024, the International Monetary Fund (IMF) predicted that Uganda’s economy will grow by double-digits when oil starts flowing, while the World Bank projects that oil revenues will significantly contribute to economic growth and development.
According to the IMF, Uganda’s domestic revenues will gradually increase from 15 billion dollars (UGX52 trillion) during the first year of oil production to 19 billion dollars (UGX66 trillion) in three years.
Construction of the crude oil pipeline is progressing well across three lots: Lake Albert to Mutukula on the Tanzanian border; Mutukula to Igugono in central Tanzania; and Igugono to Chongoleni in Tanga on the Tanzanian coats.
To date, a total of 800 kilometres of the pipeline have been welded, 300 kilometres coated with liquid epoxy, and 115 kilometres buried underground. Installation of high voltage cables along the pipeline route are also ongoing.
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(Adapted from New Vision).
