The foundation stone for the East African Crude Oil Pipeline (EACOP) project, a 1,400-km-long crude oil pipeline between Tanzania and Uganda, has been laid.
The US$3.55bn project will stretch between the western region near Hoima, where large oil reserves were discovered in 2006 (estimated crude oil reserves of between 2.6 and 6.5 Gbl, including 1.4-1.7 Gbl of recoverable reserves), and the existing port of Tanga, in north-eastern Tanzania. Tanzania has agreed to waive taxes and to charge a tariff of US$12.2/bbl to make the project feasible. When completed in 2020, it will be the first major oil pipeline in East Africa.
In addition, the Ministry of Energy and Minerals Development of Uganda has agreed preliminary terms with Albertine Graben Refinery Consortium (AGRC), a consortium of investors including GE, Saipem and Yatra Ventures to build and operate the first refinery of the country. Total, one of the three oil explorers in the country, may take up to 10% in the refinery project, while Tanzania has committed to an 8% stake and Kenya to 2.5%.