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EACOP: East Africa's Controversial Oil Pipeline Nears Landmark Completion

  • Nishadil
  • September 02, 2025
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EACOP: East Africa's Controversial Oil Pipeline Nears Landmark Completion

The ambitious East African Crude Oil Pipeline (EACOP) is rapidly approaching a critical milestone: financial close. Ugandan President Yoweri Museveni recently announced that this crucial phase, which unlocks the necessary funding for the project, is expected within months. This development signals a significant step forward for the $5 billion pipeline, set to transport crude oil 1,443 kilometers from Uganda's oil fields to Tanzania's Tanga port for export.

For years, EACOP has been a focal point of intense debate.

While proponents, including the governments of Uganda and Tanzania, champion the project as an economic game-changer, promising jobs, infrastructure development, and substantial revenue, environmental and human rights organizations have voiced grave concerns. Critics highlight potential ecological damage to sensitive ecosystems, displacement of communities, and the long-term impact of fossil fuel infrastructure amidst a global climate crisis.

TotalEnergies, the primary developer, has found itself at the heart of this controversy.

Despite the challenges, the French energy giant remains committed, citing the project's potential to significantly boost the economies of both Uganda and Tanzania. The pipeline is designed to carry 230,000 barrels of crude oil per day, providing a vital pathway for Uganda to monetize its substantial oil reserves discovered in the Lake Albert region.

The financial hurdles have been considerable.

The project requires approximately $3 billion in debt financing, with the remainder covered by equity from shareholders, including TotalEnergies (62%), Uganda National Oil Company (15%), Tanzania Petroleum Development Corporation (15%), and China National Offshore Oil Corporation (8%). Securing these loans has been a protracted battle, as many Western banks have withdrawn due to mounting pressure from environmental activists and ESG (Environmental, Social, and Governance) concerns.

This has led the consortium to seek alternative financing, reportedly leaning on institutions like China Exim Bank and Standard Bank.

President Museveni's latest announcement underscores a renewed optimism within the project's leadership. If financial close is achieved as anticipated, it would clear a major hurdle, allowing full-scale construction to accelerate.

This pipeline is not merely an infrastructure project; it represents a deeply strategic endeavor for East Africa, aiming to transform regional economies and energy landscapes, even as it continues to draw international scrutiny and debate.

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