East Africa Crude Oil Pipeline, Tilega Deal Signed in Kampala

The pipeline will cover 1,445-km ending at the port of Tanga in Tanzania, along with a storage terminal and loading jetty.

Total chairman and chief executive Patrick Pouyanne, President Samia Suluhu and President Yoweri Museveni during the signing of the East Africa Crude Oil Pipeline, Tilega deal.

French oil company Total, Uganda and Tanzania on Sunday concluded the agreement for the East African Crude Oil Pipeline (EACOP) Tripartite project.

The deal was signed in Kampala. 

President Yoweri Museveni led the Uganda delegation while Total chairman and chief executive Patrick Pouyanne led the French company’s team, Tanzania was presented by President Samia Suluhu.

The $3.5 billion deal is a strategic win for Tanzania which will earn $12.7 (60 per cent) off each barrel of oil transported through it.

“Historically, there is this unique role of Tanzania.  I am, therefore, most satisfied, that the project will make a modest contribution to the development of Tanzania. It cannot compensate for the huge sacrifice Tanzania made for us,” said President Yoweri Museveni via his Twitter account. 

The pipeline will cover 1,445-km ending at the port of Tanga in Tanzania, along with a storage terminal and loading jetty.

According to Total’s 2020 Annual Report, it is a partner with a 56.67 per cent interest, in the project to develop hr Lake Albert oil resources located in Blocks EA1, EA2 and EA3 with reserves of more than 1 billion barrels following its acquisition of Tullow’s interest in the project in November 2020. 

Uganda’s national oil company has a 15 per cent interest in those blocks. The French oil company is also a  shareholder in EACP.

“This major project, of which the Group’s share represents a USD 5.1 billion investment, is undertaken in a context where environmental and social challenges require special precautions and strong commitment,” Total says.

“These projects will create significant in-country value for both Uganda and Tanzania” said Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “Total is also taking into the highest consideration the sensitive environmental context and social stakes of these onshore projects. Our commitment is to implement these projects in an exemplary and fully transparent manner.”