Back in 2006, the East African country of Uganda made one of the biggest oil discoveries after crude oil reserves were unveiled in the Albertine Rift basin. The finding resulted in a race to secure projects related to these resources that have the ability to turn East Africa into a major international oil player.
Uganda, Tanzania, French-owned oil company Total, and the China National Offshore Oil Corporation (CNOOC) have all signed three agreements which will invest $3.5 billion into a 1,445-kilometer pipeline. It will run from western Uganda’s oil fields to the Tanzanian port of Tanga.
The East African Crude Oil pipeline (EACOP), which is expected to commence in 2025, will cost around $10 billion and is expected to produce nearly 220,000 barrels of crude oil per day at an estimated $13.30 per barrel. EACOP is cited to be the world’s largest heated oil pipeline and production, which is scheduled to begin this year, is purported to result in the establishment of 10,000 jobs.
“The Tilenga development and EACOP pipeline project are major projects for Total and are consistent with our strategy to focus on low breakeven oil projects while lowering the average carbon intensity of the Group’s upstream portfolio. These projects will create significant in-country value for both Uganda and Tanzania,” Patrick Pouyanné, chairman and chief executive officer of Total, said in a statement.