Latest news with #EACOP
Arabian Post
4 days ago
- Business
- Arabian Post
East African Crude Oil Pipeline Hits Key Milestone
The East African Crude Oil Pipeline , stretching 1,443 kilometres from Uganda to the Tanzanian port of Tanga, has passed the 60 percent completion mark, marking a significant step forward in one of Africa's largest infrastructure projects. This progress highlights the accelerating momentum in the development of critical energy infrastructure in the East African region, with implications for the economies and geopolitics of multiple countries. The pipeline, designed to transport up to 216,000 barrels of crude oil per day from the oil fields in Uganda's Lake Albert region to the Indian Ocean coast in Tanzania, aims to bolster export capacity and drive regional economic growth. It is being developed by a consortium led by the French oil giant TotalEnergies and China National Offshore Oil Corporation , alongside the governments of Uganda and Tanzania. The project is expected to be operational by 2025, facilitating Uganda's first significant oil exports and enhancing Tanzania's position as a regional energy hub. Reports from the Tanzanian construction sites indicate steady progress on various segments of the pipeline. Significant advancements have been made on the laying of pipes through diverse terrains including wetlands, forests, and agricultural lands. The project faces ongoing challenges due to the difficult environmental conditions and the need to balance ecological preservation with development objectives. However, the construction teams have implemented numerous mitigation strategies to reduce environmental impact, including careful route planning and community engagement efforts. ADVERTISEMENT Beyond the engineering and logistical achievements, the EACOP project has attracted considerable attention from environmental groups and local communities. Concerns over potential oil spills and long-term environmental degradation have been raised, particularly given the pipeline's passage through sensitive ecosystems such as the Lake Victoria basin and the Kazinga Channel. Environmentalists have urged the companies and governments involved to uphold rigorous safety standards and transparency to safeguard biodiversity and water resources. On the economic front, the pipeline is expected to create thousands of jobs across Uganda and Tanzania during construction and operation phases. Both governments project increased revenues from oil exports, which could translate into enhanced public services and infrastructure development. The project is also seen as a driver for regional integration, potentially strengthening trade ties within the East African Community through improved energy connectivity. Internationally, the EACOP project positions East Africa as a growing player in the global oil market. The completion of this pipeline will diversify crude oil supply routes and reduce reliance on pipelines running through unstable regions, such as those traversing Sudan or South Sudan. This could have broader implications for energy security in the region and beyond, influencing investment flows and geopolitical alignments. Technical reports indicate that the pipeline's infrastructure includes advanced safety features, such as leak detection systems and automated shut-off valves, which are essential in mitigating risks associated with large-scale oil transportation. The project consortium has committed to adhering to international standards throughout the construction and operational phases, a commitment that will be closely monitored by independent auditors and regulatory authorities. The financing of the EACOP pipeline reflects a mix of public and private investment, with considerable involvement from international financial institutions and development banks. This diversified funding approach aims to ensure the project's sustainability and financial viability while aligning with global best practices on transparency and governance. Despite fluctuations in global oil prices and increasing pressure for greener energy alternatives, the pipeline continues to attract financial backing due to its strategic importance. ADVERTISEMENT Local communities along the pipeline route have experienced both benefits and challenges. Job opportunities and infrastructure improvements have contributed positively to many areas, but there have also been disputes over land acquisition and compensation. Authorities from Uganda and Tanzania have been engaged in ongoing dialogues with community representatives to address grievances and ensure fair treatment for affected populations. The pipeline is expected to play a transformative role in Uganda's oil sector, allowing the landlocked country to export crude directly to global markets. This is a vital step in unlocking the commercial potential of Uganda's oil reserves, which were discovered over the past two decades but remained largely untapped due to logistical hurdles. With the pipeline nearing completion, Uganda's oil production is poised to increase significantly, potentially altering the country's economic landscape. For Tanzania, the pipeline's terminus at the port of Tanga offers prospects for expanding the country's industrial base, including refining and petrochemical industries. The project complements Tanzania's ambitions to become a regional energy corridor, benefiting from both oil exports and transit fees. The government has indicated plans to develop ancillary infrastructure, such as storage facilities and transportation networks, further integrating energy supply chains. Critics caution that the project must carefully navigate the evolving global energy transition. With increasing commitments from many countries and corporations to reduce carbon emissions and shift toward renewable energy sources, the long-term viability of new oil infrastructure faces scrutiny. Balancing economic growth from oil revenues with environmental sustainability and climate goals remains a complex challenge for the EACOP consortium and East African governments. The pipeline's construction also intersects with broader regional security concerns. Ensuring the pipeline's protection from sabotage, theft, and other security threats is paramount, given its economic significance. Governments have invested in coordination efforts among security agencies to safeguard the infrastructure, which spans multiple jurisdictions and sensitive areas.
Zawya
25-05-2025
- Business
- Zawya
UNOC CEO Proscovia Nabbanja to showcase Uganda's oil investment prospects at African Energy Week
Proscovia Nabbanja, CEO of Uganda National Oil Company, joins the African Energy Week 2025: Invest in African Energies conference to showcase Uganda's rising oil industry and strategic investment prospects in the Lake Albert project and EACOP CAPE TOWN, South Africa -- African Energy Week (AEW) 2025: Invest in African Energies has confirmed Proscovia Nabbanja, CEO of the Uganda National Oil Company (UNOC), as a distinguished speaker at this year's edition of the continent's premier energy investment event. Nabbanja stands at the helm of Uganda's oil and gas transformation, leading strategic efforts to drive national participation, fast-track infrastructure rollout and position Uganda as a competitive hydrocarbon exporter. Under her leadership, UNOC plays a central role in unlocking the full potential of the Lake Albert Development Project – Uganda's flagship upstream venture – which remains on track for first oil by the end of 2025. As upstream activities led by TotalEnergies and CNOOC progress, Uganda is steadily advancing toward becoming a net oil producer, with an estimated 1.4 billion barrels of recoverable reserves. Complementing these upstream developments is the East African Crude Oil Pipeline (EACOP) – a 1,443-km heated pipeline that will transport Ugandan crude from Hoima to the Port of Tanga in Tanzania. Once completed, EACOP will be the longest of its kind in the world and a critical enabler of Uganda's oil export ambitions. While recent financing delays have posed short-term hurdles, EACOP remains a cornerstone project for regional integration and private sector participation in East Africa's energy future. The strategic significance of Uganda's oil sector extends beyond national development. With EACOP connecting Uganda to international markets and the Lake Albert basin poised to anchor long-term production, the country is laying the groundwork for downstream growth, job creation and revenue generation. UNOC is also focused on building domestic refining and storage capacity, reinforcing energy security and creating a multiplier effect across the economy. For investors, this translates into wide-ranging opportunities not only not in crude oil production, but across logistics, infrastructure, services and skills development. "Uganda is making bold moves to monetize its resources and become a key oil producer in East Africa. In partnership with major operators, UNOC is driving projects like Lake Albert and EACOP forward with clarity of vision and a strong national agenda. We are proud to welcome Proscovia Nabbanja to AEW 2025, where she will showcase how Uganda is open for business and ready to partner with global investors,' said Oré Onagbesan, Program Director for AEW. At AEW 2025, Nabbanja will spotlight investment opportunities across Uganda's oil and gas value chain, including upstream field development, pipeline construction and local content initiatives. With UNOC actively seeking strategic and financial partners, her insights will be vital for investors looking to tap into one of Africa's most promising frontier markets. Distributed by APO Group on behalf of African Energy Chamber. About AEW: Invest in African Energies AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. SOURCE: African Energy Chamber
TimesLIVE
23-05-2025
- Business
- TimesLIVE
Union Investment cuts TotalEnergies stake over East Africa allegations
Germany's Union Investment has dropped French oil major TotalEnergies from its sustainability funds and called for an independent human rights audit following fresh allegations of abuses at a $15bn (R268.66bn) project in East Africa. The move by Union, a top-20 investor according to LSEG data, comes ahead of TotalEnergies' annual shareholder meeting on Friday and could potentially undermine its standing among investors focused on environmental, social and governance issues. TotalEnergies denied the allegations made by non-profit Just Finance International (JFI) concerning the Kingfisher oil site in Uganda, part of the East African Crude Oil Pipeline (EACOP) project in which Total has a 62% stake. A spokesperson for the oil major added it was in talks with Union Investment about its African projects. Union declined to confirm the scale of its divestment. Data from industry tracker Morningstar Direct showed Union held around 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, and still holds a stake of around €900m (R18.28bn) across other funds.
Reuters
22-05-2025
- Business
- Reuters
Union Investment cuts TotalEnergies stake over East African project allegations
LONDON/PARIS, May 22 (Reuters) - Germany's Union Investment has dropped French oil major TotalEnergies ( opens new tab from its sustainability funds and called for an independent human rights audit following fresh allegations of abuses at a $15 billion project in East Africa. The move by Union, a top-20 investor according to LSEG data, comes ahead of TotalEnergies' annual shareholder meeting on Friday and could potentially undermine its standing among investors focused on environmental, social and governance issues. TotalEnergies denied the allegations made by non-profit Just Finance International (JFI) concerning the Kingfisher oil site in Uganda, part of the East African Crude Oil Pipeline (EACOP) project in which Total has a 62% stake. A spokesperson for the oil major added it was in talks with Union Investment about its African projects. Union declined to confirm the scale of its divestment. Data from industry tracker Morningstar Direct showed Union held around 50 million euros worth of TotalEnergies shares and bonds across its sustainable funds, and still holds a stake of around 900 million euros ($1 billion) across other funds. While rival oil majors such as BP (BP.L), opens new tab, Shell (SHEL.L), opens new tab and Equinor ( opens new tab have walked back promises to invest in wind and solar, Total has continued to add renewables, winning support from those keen to play the sector's transition to a lower-carbon economy. The company, however, has faced criticism from human rights and environmental activists over the impacts of East African pipeline and Mozambique LNG projects. JFI said it found evidence of alleged forced evictions, violence against women, beatings and extortion by Ugandan security forces at the Kingfisher oil site in late 2024. JFI's report, opens new tab, released in May, was based on interviews with more than 40 people living and working in the area over the course of two years. Union decided to drop Total from its sustainable funds after reviewing a draft of the report and engaging with JFI over its findings, said Chief Sustainability Officer Henrik Pontzen. "This decision takes into account our assessment of TotalEnergies' approach to addressing serious controversies related to Mozambique and the EACOP project," he said. The TotalEnergies spokesperson cited the company's June 2024 response to a previous JFI report that, after investigating, "the highlighted concerns do not appear to be related to the Kingfisher project operations". Kingfisher is majority-owned by TotalEnergies, which has an about 57% stake, but is operated by partner China National Offshore Oil Corporation which owns 28%. Uganda's national oil company owns 15%. CNOOC, Uganda's national oil company and the Ugandan government did not respond to requests for comment. TotalEnergies is the subject of a criminal complaint and investigation in France that it failed to assist workers at its LNG project in Mozambique fleeing a 2021 jihadist attack. It denies any wrongdoing and hopes to resume building the LNG project this summer. Pontzen said Union, which manages 500 billion euros in assets, had asked the company to commission an "independent international audit" into the controversies and wanted improved transparency and accountability. TotalEnergies said a report it commissioned on EACOP last year would be completed in 2025. ($1 = 0.8853 euros)
Zawya
27-03-2025
- Business
- Zawya
East Africa's Energy Renaissance: East African Crude Oil Pipeline (EACOP), Tanzania Liquefied Natural Gas (LNG) Set to Transform the Region
Representing a strategic oil and gas frontier, the East African region offers significant opportunities for investors. Large-scale infrastructure projects such as the East African Crude Oil Pipeline (EACOP) and Tanzania LNG project are not only expected to drive economic growth in the region, but also trigger an oil and gas renaissance in East Africa. As the region gains increasing attention from international stakeholders, it is poised to become a key player in the global energy landscape, attracting both foreign investments and strategic partnerships. EACOP Set to begin exporting oil in 2026, the 1,443-km EACOP will play a vital part in driving East Africa's energy renaissance. Currently in the EPC stage, the pipeline connects the Kingfisher and Tilenga oilfields – set to come online in 2025 – with international markets via Tanzania's Port of Tanga, offering a direct export route to global markets. Recent developments showcase the strong commitment by project developers TotalEnergies and China National Offshore Oil Corporation (CNOOC), as well as the respective national oil companies of Uganda and Tanzania, to advancing the project. In March 2025, EACOP conducted orbital welding training in Uganda to support the development and maintenance of the pipeline. The training aligns with local content and technology transfer aspirations, facilitating greater participation by local communities in the pipeline's development. Earlier this month, the project operators completed the first Integrated E-House Main Line Block Valve. The valve represents the first of 65 stand-alone MLBV E-station containers – 59 of which are along the export pipeline and 6 along the Tilenga Feeder Line – that will support pipeline operations. The Government of Tanzania and EACOP signed an MoU in February 2025 on project security, reinforcing a shared commitment to ensuring safe and secure operations. One of the biggest challenges faced by the project has been access to financing. To date, the pipeline has secured $2 billion in global financing, representing the largest single investment in both Uganda and Tanzania. However, EACOP is seeking an additional $3 billion in debt financing to fast-track development. Standard Bank announced its support of the project in 2024, while China is expected to offer financing through Sinosure and the Export-Import Bank of China. While this support is vital, additional investment is needed to bring this project to fruition. Tanzania LNG The Tanzania LNG project aims to reach a final investment decision in 2028. Representing the largest gas project in Eastern and Southern Africa, the project will position Tanzania as a major LNG exporter, monetizing 16 trillion cubic feet (tcf) of gas resources within the Shell-operated Blocks 1 and 4 and 20 tcf in the Equinor-operated Block 2. The Tanzanian government is currently revising terms of a Host Government Agreement – initially reached in 2023 – with energy majors Shell, Equinor and ExxonMobil. Discussions are set to conclude by June 2025. Despite project delays, in 2024, Equinor affirmed its commitment to the $42 billion project, citing a need to reach mutually-beneficial commercial terms. Following the conclusion of these talks, the project developers will move forward with the development, engaging financiers to expedite the project's progress. Tanzania LNG will not only position the country as an LNG exporter, but also help monetize future discoveries offshore. Currently, the country is preparing to launch an international licensing round, with 26 blocks initially allocated for tender. At present, CNOOC is leading exploration, conducting seismic surveys in deepwater blocks near previously-discovered acreage. Fresh investment will bolster Tanzania's gas production, consolidating the region's position as an energy producer. African Energy Week: Bridging East African Investment The African Energy Week (AEW): Invest in African Energies conference – returning to Cape Town for its fifth edition from September 29 to October 3 – serves as a vital link between global investors and East African energy projects. Uniting project investors, operators, African governments and policymakers, the event aims to unlock new energy frontiers across the continent. This year's conference will provide updates on the EACOP and Tanzania LNG projects, while offering valuable insight into upcoming investment opportunities in East Africa's growing oil and gas sector. 'The EACOP and Tanzania LNG projects have the potential to transform the East African energy landscape, and finalizing these projects has become more critical than ever. AEW: Invest in African Energies will bridge the region's financing gap by connecting key players to discuss opportunities, challenges and development strategies,' stated Tomás C. Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
