Government Receives Application For EACOP Construction License

Government Receives Application For EACOP Construction License

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By Spy Uganda

The East African Crude Oil Pipeline Company (EACOP) Ltd, the firm spearheading the development of Uganda’s US$3.5 billion crude oil export pipeline, has applied for a construction license.

A construction license will enable the company to kickstart the development of the 1,443km, 24-inch diameter heated and buried crude oil pipeline that will start from Kabaale, Hoima in Uganda to Chongoleani, Tanga in Tanzania. It will be the longest heat traced pipeline in the world.

While applying to the Ministry of Energy and Mineral Development, EACOP Ltd’s General Manager, Mr Martin Tiffen, said all is set for the work to commence. Also present were Mr John Bosco Habumugisha (EACOP Ltd Deputy General Manager) and Mr Lawrence Ssempanji (Compliance Lead, Uganda).

Upon receipt of the application, Mr Honey Malinga, the Ag. the Director of Petroleum at the Ministry pledged continued Government of Uganda support to ensure seamless implementation of EACOP. He said the licensing process would take a maximum period of three months.

“I want to thank the company for preparing the application for the construction license…the Ministry will process the application in accordance with the law, and we look forward to timely commencement of pipeline construction,” said Mr Malinga.

He urged the company to pay attention and swiftly address the issues raised from time to time by the Government, communities, local leadership, and other stakeholders.

The Inter-Government Agreement (IGA) for the crude export pipeline was signed in May 2017. The Front-End Engineering Design (FEED) for the EACOP was carried out and approved by the Petroleum Authority of Uganda in October 2020.

The Environmental and Social Impact Assessment (ESIA) studies for the EACOP were approved, and the National Environment Management Authority (NEMA) issued the certificate in December 2020.

The licensed upstream oil companies are leading the development of this pipeline in Uganda: Total Energies (62% shares), CNOOC Uganda (8%), Uganda National Oil Company (UNOC) [15%), and the Tanzania Petroleum Development Corporation (TPDC) [15%]. The shareholders announced a Final Investment Decision (FID) on 1 February 2022, signifying EACOP Ltd’s commitment to financing the project.

Plans are in advanced stages to secure the land requirements for the EACOP in Uganda – comprised of construction camps covering 172 acres; pipeline Right of Way (RoW) and orphan land covering 2,745 acres; and feeder roads covering 182 acres.

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