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Minister Mary Kitutu

EACOP Project to Provide 14,000 Direct Jobs

According to the Energy minister, of the direct employment, 57% are expected to be Ugandans, which is expected to result in an estimated $48.5 million annual payment to Ugandan employees. Kitutu said that Government estimates that First Oil will be within 4 years, with the actual construction starting next year.
posted onApril 15, 2021
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The East African Crude Oil Pipeline (EACOP) project and other oil and gas projects that were launched last week, is expected to provide 14,000 direct jobs.

The Minister of Energy and Minerals Development, Dr. Mary Goretti Kitutu yesterday told Parliament that these oil and gas projects have immense benefits for the country.

“This will be through direct employment of about 14,000 people by the companies, indirect employment of about 45,000 people by the contractors, and induced employment of about 105,000 people as a result of utilisation of other services by the oil and gas sector,” Kitutu said in her statement on the floor of Parliament.

According to the Energy minister, of the direct employment, 57% are expected to be Ugandans, which is expected to result in an estimated $48.5 million annual payment to Ugandan employees. Kitutu said that Government estimates that First Oil will be within 4 years, with the actual construction starting next year.

“However, other processes are already on-going including the acquisition of land for the pipeline and the EPC management activities. It is important for the people of Uganda to take note of, and position themselves to benefit from, the extensive activities already going on,” she said.

On Sunday, 11th April, 2021, Uganda witnessed a historic milestone in its journey to First Oil, which marked the launch of Uganda's Oil and Gas projects. The event, which culminated into the conclusion of key agreements, was graced by the two Heads of State, HE Yoweri Museveni and HE Samia Suluhu Hassan, the President of the United Republic of Tanzania.

One of the key agreements signed was the Uganda Host Government Agreement (HGA) between the Government of Uganda and the EACOP Company.

The second agreement was the Shareholders Agreement(SHA), which defines the rights and responsibilities of the shareholders in the EACOP Company. The shareholders are; the Uganda National Oil Company (UNOC) with 15%, the Joint Venture Partners (Total E&P Uganda Limited with 62% and CNOOC Uganda Limited with 8%) and the Tanzania Petroleum Development Corporation (TPDC) with 15%.

READ MORE: Uganda, Tanzania Seal Crucial Deals to Kick off Pipeline Construction

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