The Uganda National Oil Company (UNOC), in partnership with TotalEnergies, CNOOC, and the Tanzania Petroleum Development Corporation, is leading the development of the East African Crude Oil Pipeline (EACOP), a 1,443km infrastructure project linking Uganda's Tilenga and Kingfisher oilfields to Tanzania's Port of Tanga.
The project, estimated to cost $5 billion, aims to start exporting crude by the end of 2025 and connects Uganda's oilfields with international markets.
The project, estimated to cost $5 billion, features a 296-km section in Uganda and a 1,147-km section in Tanzania.
With a capacity to transport 246,000 barrels per day, EACOP directly connects Uganda's oilfields with international markets and serves as a vital route for regional neighbors such as the Democratic Republic of the Congo (DRC).
EACOP has raised $2 billion in equity funding from its developers and is seeking an additional $3 billion in debt financing.
Chinese financiers have expressed interest in supporting the project, and Uganda's Ministry of Energy and Mineral Development is currently in discussions with Beijing to discuss investment options.
In June 2024, UNOC invested an additional $35 million to bridge the gap between equity and debt financing.
"One of the biggest challenges African oil and gas projects face today is the lack of financing. In the current energy transition climate, global capital expenditure has become increasingly more competitive, with pressures mounting to reduce funding for fossil fuel projects. Despite this, projects such as EACOP are proving resilient, and it is all due to the efforts by the state-owned UNOC," states NJ Ayuk, Executive Chairman of the African Energy Chamber.