UIA Issues Investment License to East African Crude Oil Pipeline Project

Uganda Investment Authority (UIA) issued an investment license to the East African Crude Oil Project (EACOP), with an investment value of $4 billion, reads a statement on the UIA website.

UIA Director General, Robert Mukiza, handed over the investment license to the Deputy Managing Director of EACOP Uganda branch, John Bosco Habumugisha on March 28. The event, which was held at UIA headquarters in Kampala -- was witnessed by UIA Board Member Angelo Izama and representatives from the shareholders [Uganda National Oil Company (UNOC) and Joint Venture Partners Total Holdings International B.V., CNOOC Uganda Limited and Tanzania Petroleum Development Corporation (TPDC)].

UNOC has 15% shareholding, Total (62%), CNOOC (8%) and TPDC (15%). The EACOP is the single biggest investment project so far licensed by UIA since 1991.  The EACOP, also known as the Uganda-Tanzania Crude Oil Pipeline, is a 1,443 km crude oil pipeline that will transport crude oil from Uganda’s oil fields to the Indian Ocean Port of Tanga in Tanzania.

On completion, EACOP will be the longest heated crude oil pipeline in the world, directly employ 14,000 people, indirectly employ 45,000 people and induce employment of 105,000 people. The pipeline’s benefits for Ugandans include direct employment of 14,000 people, indirect employment of 45,000 people and induced employment of about 105,000 people.

Of the direct employment, 57% are expected to be for Ugandans, which is expected to result in an estimated 48.5 million-dollar annual payment to Ugandan employees. EACOP will also translate into capacity building of Ugandans, as well as the transfer of much-needed technology, knowledge, and skills. Ugandan companies will also benefit from partnerships with global oil players. The investment project will also see the provision of a number of goods and services ring-fenced for Ugandan companies. EACOP is also expected to de-risk all other upcoming projects including the refinery and the new exploration projects, in addition to evacuation options for future oil discoveries in new exploration areas.