Tanzania gains billions from EACOP progress
TANGA: THE implementation of the East African Crude Oil Pipeline (EACOP) has reached a significant 64.5 per cent completion, a milestone that has already generated 50bn/- in revenues for Tanzania from development levies, taxes and other charges.
EACOP is a 1,443-kilometre crude oil export pipeline designed to transport Uganda’s crude oil from Kabaale-Hoima in Uganda to the Chongoleani Peninsula near Tanga port in Tanzania. The pipeline’s path sees its first 296 kilometres in Uganda, with the remaining 1,147 kilometres traversing Tanzania.
Tanzania’s Project Coordinator, Mr Asiadi Mrutu, said during a televised TBC1 programme recently that so far, the project cost is about 1.3tri/- and has employed 1,200 Tanzanians, of whom 346 employees have been drawn from neighbouring areas such as Chongoleani.
Chongoleani area acts as the project base in Tanzania, where oil depots and tanks are being built. Additionally, the construction of oil tanks has reached 80 per cent completion, while the main oil terminal has reached 39 per cent.
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The oil terminal acts as the central point where crude oil will be stored and tapped for the world market. Mr Mrutu said the construction of the pipeline itself had begun, mentioning that 360 kilometres of the pipeline had been welded and laid, with the construction of the buildings of crude oil pumping stations standing at 55.6 per cent completion.
He said they have pipes that are enough to cover 900 kilometres. Furthermore, he said payment of compensation to residents in all areas where the project covers had reached 99.3 per cent. Tanzania owns a 15 per cent share of the project.
Meanwhile, Ministry of Energy’s Head of Government Communication Unit, Ms Neema Mbuja, said she was delighted with the project implementation as stipulated in its inked contract in 2021. Once completed, EACOP will be the longest heated crude oil pipeline in the world.
EACOP is a joint venture involving TotalEnergies (62 per cent), Uganda National Oil Corporation (15 per cent), Tanzania Petroleum Development Corporation (15 per cent), and China National Offshore Oil Corporation (8 per cent). The entire project is estimated to cost 5 billion US dollars (over 13tri/-)
