Tanzania East African Crude Oil Pipeline (EACOP) Project Halfway Near Completion:  7,584 Jobs Created

Tanzania’s East African Crude Oil Pipeline (EACOP) project, which connects Hoima in Uganda to Tanga in Tanzania, is halfway near completion in its construction phase.

The project update was made on 18^th October 2024 by the EACOP Project Coordinator from the Tanzania Petroleum Development Corporation (TPDC), Asiadi Mrutu during a visit to the construction site of the factory for heat treatment and insulation systems for the pipeline in Nzega District, in the Tabora Region.

Mrutu stated that the pipeline’s construction activities continue in various areas from Mtukula in the Kagera region to Chongoleani in the Tanga region.

He also mentioned that in October 2024, the government, through TPDC, contributed a capital investment of approximately TZS 977.6 billion to the EACOP project company.

He added that the construction of the heat treatment and insulation systems factory in Sojo Village, Nzega District, in the Tabora Region, has reached 93% completion.

Mrutu highlighted: “This factory continues to produce pipes, and so far, a total of 70.7 kilometers of pipes have been fitted with heat treatment and insulation systems. The construction of the pipeline and its infrastructure is ongoing.”

“So far, the project has created 7,584 jobs, procurement of domestic services and products worth approximately TZS 833.7 billion, government revenue of around TZS 40 billion, and the transfer of technology from contractors,” added Mrutu.

“Besides being a shareholder, TPDC owns the land for the pipeline route and the construction camp areas. To date, we have successfully paid compensation totaling TZS 35.1 billion to 9,858 citizens out of 9,927, which is 99.3% of the affected population. Additionally, the project has successfully built 340 alternative housing units for 294 citizens who lost their homes during the project. The government continues to collaborate with other stakeholders to ensure that project funds are available on time and that implementation proceeds as planned to meet the goals. Construction is expected to be completed by mid-2026,” concluded Mrutu.

The East African Crude Oil Pipeline (EACOP) Project

The East African Crude Oil Pipeline (EACOP) is a major infrastructure project designed to transport crude oil from Uganda’s Lake Albert region to the port of Tanga in Tanzania.

Spanning approximately 1,443 km —of which 1,147km in Tanzania —the pipeline aims to facilitate the export of oil from Uganda’s Tilenga and Kingfisher oil fields, which hold an estimated 6.5 billion barrels of recoverable oil reserves.

EACOP is a joint venture involving TotalEnergies (62%), Uganda National Oil Corporation (15%), Tanzania Petroleum Development Corporation (15%), and China National Offshore Oil Corporation (8%).

The pipeline is expected to have a capacity of 216,000 barrels per day, with a potential ramp-up to 246,000 barrels per day, and is projected to require an investment of around US$ 5 billion.