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East African Crude Oil Pipeline (EACOP) Project

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Uganda and Tanzania have signed an MOU on army and safety cooperation for the East African Crude Oil Pipeline (EACOP) challenge. The settlement was signed on Friday after a three-day Inter-governmental Safety Committee Assembly on the Skyz Resort Naguru in Kampala. The technical working committee, Chief of Defence Forces, and Safety Ministers from the 2 East African nations had been all current.

Additionally Learn: Nyamwamba II Hydropower Undertaking in Kasese, Uganda, Reaches PPA COD

Seek for development leads

The Committee assembly was referred to as after the 2 nations signed an MoU on the formation of Inter-Governmental Safety for the EACOP challenge in 2020. It resulted from a decision made in the course of the 4th Joint Everlasting Fee – JPC assembly in Kampala on the seventeenth and nineteenth of January 2022.

The need of the settlement 

The JPC resolved to determine the Intergovernmental Safety to boost collaboration among the many State Events in fulfilling their safety duties in assist of the oil pipeline challenge. The Minister of Protection and Veteran Affairs, Vincent Bamulangaki Ssempijja, said that the bilateral assembly would assist within the gathering and sharing of intelligence data to fight cross-border insecurity corresponding to terrorism, drug trafficking, cyber safety, unlawful migration, and sabotage of crude oil pipeline infrastructure, amongst different issues.

Dr Tax Stergomena, Tanzania’s Minister of Defence and Nationwide Service, pointed to the significance of diplomatic and army cooperation between the 2 nations in creating the crude oil pipeline, a key challenge with quite a few socioeconomic benefits. Dr Stergomena expressed fear that terrorism is a critical hazard that necessitates collaborative and proportionate actions and measures, including that Tanzania is dedicated to collaborating with Uganda to deal with peace and safety considerations.

The technical groups for the EACOP challenge Intergovernmental Safety Committees had been directed by Ugandan Gen (Rtd) Harmless Oula and Tanzanian Gen Elias Athanas, respectively. The Chief of Defence Forces, Gen Wilson Mbasu Mbadi, and the Chief of the Tanzania Individuals’s Defence Forces had been additionally current. The Uganda-Tanzania Inter-Governmental Settlement was signed in Might 2017, and the EACOP Basis Stones had been positioned in Tanga in August 2017 and Hoima in November 2017.

Reported earlier

Nov 2014

Advisor for the US$4bn East Africa oil pipeline revealed

Kenya, Uganda and Rwanda have concluded the seek for a marketing consultant for the regional oil pipeline. The challenge might be developed as a single challenge, break up into sections that might be carried out by every state of their area in response to Kenya’s Power PS Joseph Njoroge.

The three states settled on Toyota Tsusho Engineering Company the place a deal was signed on Thursday in Kampala, Uganda. The corporate was chosen amongst eight that had prequalified for the tender. It’s anticipated that feasibility research and design of the pipeline might be carried out by the corporate inside 5 months, from the interval of issuance of the contract.

Toyota may also be required to oversee the development of a fibre optic cable operating from Hoima in Uganda, by Lokichar in Kenya to Lamu and tank terminals in Hoima, Lokichar and Lamu. Tullow Oil and Africa Oil have within the latest previous found 600 million barrels of commercially viable oil within the South Lokichar basin in Kenya and thus the necessity for the multi-billion greenback challenge. In Uganda, the federal government estimates their crude reserves at 6.5 billion barrels.

Kenya, Uganda and Rwanda launched into the development of the USD 4bn Hoima-Lokichar-Lamu crude oil pipeline challenge.

The thought of a single contractor for the challenge was authorized by the East African Group member states of Uganda, Rwanda, South Sudan, Tanzania and Burundi in Might this yr. The Worldwide Finance Company has already dedicated to offering US$600m for the pipeline challenge. 

Dec 2018

Uganda-Tanzania Oil Pipeline inches nearer to turning into a actuality

Gas pipeline Equatorial Guinea

Building work on the Uganda-Tanzania oil pipeline appears nearer to turning into a actuality now that Tanzania has introduced that they’ve accomplished geophysical and geological research.

This was introduced by Dr Kalemani Power Minister for Tanzania who sought to allay rumours that the challenge could not see the sunshine of day. The minister was chatting with the press within the firm of his Ugandan counterpart Eng. Irene Muloni in Dar-es-salaam.

1400km pipeline

When accomplished the pipeline will stretch from Hoima in Uganda to the Tanzanian port of Tanga on the East African coast a distance of over 1400 kilometres and can value an estimated US$ 4 billion. It’s anticipated that 70 per cent of the funding for the challenge might be raised by Uganda and Tanzania whereas the remaining will come from Tullow and CNOOC.

Additionally Learn:Uganda, Tanzania signal deal for development of US$ 4bn crude export pipeline

The Homa to Tanga crude oil pipeline will ship crude oil from Uganda to the East African port city of Tanga. Uganda boasts of getting the fourth-largest reserves of crude oil up to now found on the continent of Africa behind Nigeria, Angola and South Sudan. The confirmed reserves at present stand at 6.5 billion barrels a day.

Heated oil pipeline

Owing to the viscous nature of Uganda’s crude oil the 24-inch diameter pipeline must be heated to make the crude oil movement simpler which is able to make it the longest electrically heated pipeline on the planet.

The choice for Uganda to go for the Tanga route got here after intense lobbying by Kenya to construct the pipeline by its nation to the port city of Lamu through Lokichar the place Kenya has additionally found oil. Since then Kenya has made the choice to go it alone on this challenge.

Jan 2019

Affect Evaluation report for Uganda-Tanzania pipeline full

Phase1 of Nigeria- Morocco gas pipeline project nears completion

The Environmental Social Affect Evaluation (ESIA) report for the US $4bn pipeline operating from Uganda to Tanzania has been accomplished and handed over to the Nationwide Environmental Administration Authority (NEMA).

NEMA confirmed receiving the report and mentioned they’ll start the reviewing course of to make sure the challenge doesn’t considerably have an effect on the surroundings. The report evaluates potential environmental and social dangers concerned with the tasks whereas giving mitigation measures.

“We will affirm receipt of the ESIA Report for the East African Crude Oil Pipeline (EACOP) Undertaking and our oil and Gasoline Staff will evaluation it within the subsequent set of days,” mentioned NEMA.

Additionally Learn: South Africa to assemble an oil refinery and petrochemical complicated

Uganda-Tanzania pipeline

East Africa Crude Oil Pipeline (EACOP) contracted the Gulf Interstate Engineers to conduct the examine of the pipeline set to run from Kabale-Hoima in Uganda to the Chongoleani peninsula close to Tanga Port in Tanzania.

Approval of the 1,445-kilometre pipeline challenge by NEMA will pave method for its development which is anticipated to take no less than three years. The challenge is a three way partnership between companions and builders corresponding to Whole, China Nationwide Offshore Oil Firm (CNOOC) and Tullow.

Longest electrically heated oil pipeline on the planet

Upon completion, the pipeline is anticipated to 216,000 barrels of crude oil per day. As a result of viscous and waxy nature of Uganda’s crude oil, the pipeline will must be heated alongside the whole route making the East African Oil Pipeline the longest electrically heated oil pipeline on the planet.

Based on earlier negotiations, Uganda pays Tanzania US $12.20 per barrel of oil. The three way partnership companions are keener on the crude oil pipeline as a result of exported crude oil offers them extra worth. Uganda has 1.4 billion barrels of recoverable oil, now anticipated to come back in 2022.

The inter-governmental challenge is sure to create 10,000 jobs for the host communities throughout development and profit the host nations by revenues and taxes. Funding for the challenge might be made by a challenge finance settlement the place banks and monetary establishments are anticipated to finance 70% of the fee whereas the Ugandan and Tanzania authorities alongside stakeholders would finance the rest.

April 2020

Tullow Oil promote stake in East African crude Oil Pipeline system

The East African Crude Oil Pipeline (EACOP) challenge is ready to obtain a brand new proprietor after Tullow oil plc. agreed to promote its property on this challenge in addition to its stake (Block 2) on the Lake Albert Oil Undertaking to Whole E&P Uganda B.V. (Whole Uganda) below a Sale and Buy Settlement (SPA) signed between the 2 our bodies.

The East African Crude Oil Pipeline challenge is a deliberate 1,443 km pipeline that might be constructed with the intention of transporting about 10.9 million tons of crude oil per yr from Lake Albert oil reserves in Uganda to the port of Tanga in Tanzania for export to worldwide markets.

Phrases of the SPA

The settlement helps the switch of possession of Tullow’s Oil and pipeline property in Uganda to Whole Uganda for a money consideration of US$575M plus potential contingent funds after the primary oil.

Additionally Learn: Uganda and Tanzania to signal US $3.5bn pipeline deal

The Money Consideration consists of US$500M payable on the completion of the deal within the 2nd half of this yr and US$75M payable after the Closing Funding Resolution (FID) of the Lake Albert Growth Undertaking.  The extra funds might be obtained by Tullow within the type of contingent funds which might be payable on upstream revenues from the Lake Albert Growth Undertaking, relying on the typical annual Brent worth as soon as manufacturing commences.

The 2 multinational oil and gasoline business gamers have had supportive discussions with the Authorities of Uganda and the Uganda Income Authority (URA), together with the rules of the tax remedy of the Transaction.  The rules embody the place on Ugandan tax on capital beneficial properties, which is to be remitted by Whole Uganda on behalf of Tullow Uganda, and which is anticipated to be US$14.6M in respect of the Money Consideration. All events concerned now intend to signal a binding tax settlement that displays these rules which is able to allow the Transaction to finish.

Tullow’s monetary technique to maneuver to a extra conservative capital construction

The Transaction, in response to Dorothy Thompson, Government Chair for Tullow oil plc., will strengthen the corporate’s stability sheet as a part of its monetary technique to maneuver to a extra conservative capital construction. The Transaction will assist in the restoration of the preliminary capital and the removing of all future capital expendituress related to the Lake Albert Growth Undertaking while retaining publicity through contingent consideration linked to manufacturing and the oil worth by the contingent money funds described above.

AfDB refutes alleged commitments to fund East African Crude Oil Pipeline challenge

The African Growth Financial institution (AfDB) has launched an announcement that denies its alleged dedication to finance the deliberate East African Crude Oil Pipeline (EACOP). This comes after greater than 100 civil society organizations (CSOs) and environmental NGOs wrote a joint letter asking the establishment to withdraw from the challenge on account of its potential social and environmental injury.

Within the assertion, the pan-African monetary establishment says that the NEPAD Infrastructure Undertaking Preparation Facility (NEPAD-IPPF) has not offered financing to any non-public sector firm for upstream oil or gasoline pipeline tasks in East Africa and that no dedication has been made to any social gathering to fund the East African Crude Oil Pipeline Undertaking.

Additionally Learn: Uganda to develop US $5bn oilfields

The establishment has nevertheless emphasised its dedication to maintain on crafting insurance policies and delivering investments that promote sustainable growth practices on the African continent, together with local weather adaptation and resilience.

The East African Crude Oil Pipeline

The East African Crude Oil Pipeline (EACOP) challenge entails the governments of Uganda and Tanzania because the developer and Stanbic of Uganda and Sumitomo Mitsui of Japan because the monetary advisers.

The challenge has nevertheless confronted critical condemnation, particularly in Uganda. Originally of this yr, the Africa Institute for Power Governance (Afiego) and the Civil Society Coalition on Oil and Gasoline (CSCO) referred to as upon Uganda’s Nationwide Environmental Administration Authority (Nema) and the Ugandan residents to reject the pipeline’s environmental and social affect report, printed by the federal government of the East African nation.

The danger of an oil spill into Lake Victoria in response to the above-mentioned organizations would have disastrous penalties for thousands and thousands of individuals residing in about eight nations and who rely upon the 2 lakes and their watersheds for consuming water and meals manufacturing by agriculture and fishing.

September 2020

Uganda-Tanzania signal settlement for East Africa Crude Oil Pipeline challenge

The governments of Uganda and Tanzania have signed the Host Authorities Settlement (HGA) in the direction of the implementation of the East Africa Crude Oil Pipeline (EACOP) challenge. The pipeline will run from Uganda’s oilfields round Lake Albert to the port of Tanga in Tanzania’s northeast area. Based on Hassan Abassi, Tanzania’s authorities spokesman, greater than three-quarters of the pipeline will run by Tanzania.

Abassi additionally mentioned that Tanzania will earn an estimated US$3.24bn and create greater than 18,000 jobs over the following 25 years, or extra, that the challenge might be in operation.

Additionally Learn: Tullow Oil promote stake in East African crude Oil Pipeline system

A deal between Uganda and Whole on East Africa Crude Oil Pipeline

The signing of the settlement between the 2 East African nations comes a day after Uganda and French oil and gasoline multinational firm Whole struck a deal that established a Host Authorities Settlement governing the export pipeline challenge within the nation and the situations of entry of the Uganda Nationwide Oil Firm within the challenge.

In an announcement, Pierre Jessua, the managing director of Whole E&P Uganda mentioned that owing to the deal, they’ve reached a serious milestone that paves the way in which to the Closing Funding Resolution within the coming months.  “We now sit up for concluding the same HGA with the Authorities of Tanzania and to finishing the tendering course of for all main engineering, procurement, and development contracts,” he mentioned.

Whole is the main shareholder in Uganda’s oil fields after agreeing to purchase Tullow Oil’s stake in onshore fields. It can work alongside Chinese language state-owned CNOOC to develop the Oil reserves which are estimated to have 6bn barrels.

Latest considerations in regards to the challenge

Not too long ago a report printed by the Worldwide Federation for Human Rights (FIDH) and the NGO Oxfam identified that if carried out efficiently, this challenge will have an effect on greater than 12,000 households and can trigger the destruction of delicate ecosystems in a area whose biodiversity is likely one of the richest on the planet.

Relating to the considerations, Whole mentioned that it’s decided to “proceed helpful dialogue” with NGOs and communities and to tackle board a few of their suggestions.

March 2021

Building of East African Crude Oil Pipeline to start in March

The development of the US $3.5bn East African Crude Oil Pipeline (EACOP) is anticipated to start in March. Based on International Affairs minister Palamagamba Kabudi, Whole Oil Firm director for Africa Division Nicolas Terraz assured him that the precise development of the challenge would begin within the second week of March.

“Whereas in France I held talks with Whole director who assured me that each one is ready for the development of the pipeline to kick off within the second week of subsequent month,” mentioned Prof Kabudi.

In September final yr, President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the EACOP challenge in a bilateral assembly held in Chato District in Geita. This was a follow-up assembly after Uganda signed the Host Authorities Settlement (HGA) with Whole on the multibillion-dollar EACOP Undertaking.

The 2 leaders urged officers from each nations to expedite the harmonisation of pending points and fast-track the remaining agreements together with the Tanzanian HGA to lock the implementation of the challenge.

Additionally Learn: Tazama Pipelines seeks mortgage to improve Tanzania–Zambia Crude Oil Pipeline

East African Crude Oil Pipeline (EACOP)

The pipeline will run from Uganda’s oilfields round Lake Albert to the port of Tanga in Tanzania’s northeast area. Based on Hassan Abassi, Tanzania’s authorities spokesman, greater than three-quarters of the pipeline will run by Tanzania. Furthermore, Tanzania will earn an estimated US$3.24bn and create greater than 18,000 jobs over the following 25 years, or extra, after the challenge is in operation.

Whole is the main shareholder in Uganda’s oil fields after agreeing to purchase Tullow Oil’s stake in onshore fields. It can work alongside Chinese language state-owned CNOOC to develop the Oil reserves which are estimated to have 6bn barrels.

April 2021

The launch of the East African Crude Oil Pipeline (EACOP) challenge deferred to April

The launch of the East African Crude Oil Pipeline (EACOP) challenge, which was deliberate to happen on 22nd March 2021, has been deferred to April 2021 because of the very unhappy and premature demise of Dr John Pombe Magufuli, the previous President of the United Republic of Tanzania.

President Magufuli’s astute management set a robust basis for the EACOP challenge, with key milestones that included the signing of the Inter-Governmental Settlement (IGA) in 2017, and the initialling of the Tanzania Host Authorities Settlement (HGA) in 2020.

Additionally Learn: Whole suspends restart of works at Mozambique LNG challenge amid assaults

East African Crude Oil Pipeline (EACOP)

The development of the US $3.5bn East African Crude Oil Pipeline (EACOP) challenge was anticipated to start in March after Whole Oil Firm director for Africa Division Nicolas Terraz assured Uganda’s International Affairs minister Palamagamba Kabudi that each one is ready for the development of the pipeline to kick off.

In September final yr, the President of Uganda, Yoweri Museveni, and his Tanzanian counterpart, John Magufuli, agreed to hasten the implementation of the EACOP challenge in a bilateral assembly held in Chato District in Geita. This was a follow-up assembly after Uganda signed the Host Authorities Settlement (HGA) with Whole on the multibillion-dollar EACOP Undertaking.

The 2 leaders urged officers from each nations to expedite the harmonisation of pending points and fast-track the remaining agreements together with the Tanzanian HGA to lock the implementation of the challenge.

The pipeline will run from Uganda’s oilfields round Lake Albert to the port of Tanga in Tanzania’s northeast area. Greater than three-quarters of the pipeline will run by Tanzania. Furthermore, Tanzania will earn an estimated US$3.24bn and create greater than 18,000 jobs over the following 25 years, or extra, after the challenge is in operation.

Uganda approves Resettlement Motion Plan for EACOP

The federal government of Uganda by the Ministry of Power and Mineral Growth has authorized the Resettlement Motion Plan for the East African Crude Oil Pipeline (EACOP) challenge.

This approval is restricted to the Uganda part of the challenge and paves method for the implementation of the second part of the land acquisition and resettlement course of which entails finishing the acquisition of land and securing the rights to the land, together with cost of compensation and resettlement of affected households.

Based on Mr Honey Malinga, the Director of Petroleum on the Ministry of Power and Mineral Growth, the land acquisition course of has been undertaken in compliance with Ugandan regulation and Worldwide Finance Company (IFC) rules. “Intensive work has gone into the preparation of the Resettlement Motion Plan (RAP) to make sure an environment friendly implementation and that each one affected individuals are pretty compensated,” he mentioned.

Additionally Learn: Feruka-Harare pipeline in Zimbabwe to bear next-gen engineering works

East African Crude Oil Pipeline (EACOP)

EACOP is a 1,443km crude export pipeline system that can transport Uganda’s crude oil from Kabaale – Hoima District in Uganda to a maritime port facility on the Chongoleani peninsula Tanga in Tanzania. This export system, (296km in Uganda and 1,147km in Tanzania), contains a 24 inch insulated buried pipeline, six (6) pumping Stations (2 in Uganda and 4 in Tanzania) and a maritime export terminal.

The part in Uganda will traverse 10 districts; Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera; 27 Sub-counties, 3 City Councils and 171 villages.

The challenge’s everlasting land necessities cowl the crude oil pipeline hall, Above Floor Installations (AGIs) corresponding to pump stations, entry roads and 4 development camps and pipe yards. In Uganda, these land necessities whole roughly 2,740 acres or roughly 1,109 hectares (ha). Most of this (over 90%) pertains to the 30m huge development hall for the export pipeline and AGUs, with the rest for momentary development amenities and entry roads.

Uganda and Tanzania signal deal for US $3.5bn EACOP challenge

East African nations, Uganda and Tanzania have lastly signed the deal for the US $3.5bn East African Crude Oil Pipeline (EACOP) challenge. Tanzania President Samia Suluhu Hassan travelled to Kampala to finalize the take care of his Ugandan counterpart, Yoweri Museveni. Whole chairman and chief government Patrick Pouyanne was additionally in attendance. The deal is anticipated to unlock upwards of US $15bn in investments.

The long-awaited settlement permits Uganda to maneuver forward with a challenge that has been stricken by delays for greater than a decade for the reason that affirmation of economic deposits. The signing of the deal for the EACOP challenge was earlier scheduled for March 22 in Kampala however was postponed following the dying of Tanzania’s President John Pombe Magufuli.

Additionally Learn: 18km gasoline pipeline system in Ogun State, Nigeria, commissioned by SGDZ

East Africa Crude Oil Export Pipeline (EACOP)

In 2006, industrial portions of oil had been confirmed to exist within the Lake Albert basin in Uganda. The Oil corporations in Uganda; CNOOC LTD, TOTAL and TULLOW PLC accomplished the exploration part. In November 2020 Whole finalized the acquisition of Tullow’s complete pursuits within the Uganda Lake Albert growth challenge together with the East African Crude Oil Pipeline 2020. Whole, now a majority shareholder and CNOOC are actually headed into growth part, which is able to consequently result in the manufacturing of Uganda’s oil assets.

As soon as produced, the crude oil might be partly refined in Uganda to produce the native market and partly exported to the worldwide market. The export to the worldwide market might be by an export crude oil pipeline; The East Africa Crude Oil Export Pipeline (EACOP). This pipeline might be constructed and operated by a Pipeline Firm with shareholding from the Uganda Nationwide Oil Firm, the Tanzania Petroleum Growth Company and the 2 oil corporations; TOTAL and CNOOC.

At peak manufacturing, the 1,445km heated pipeline which begins in Hoima within the Albertine Graben, western Uganda, and ends at Tanga Port in Tanzania, will transport 216,000 barrels of crude oil per day. As a result of waxy nature of Uganda’s oil, it is going to be one of many longest heated crude oil export pipelines on the planet.

 

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