The Uganda-Tanzania oil pipeline, majority-owned by TotalEnergies, has secured its first tranche of external financing.
Backers include Afreximbank, Standard Bank, Stanbic Uganda, KCB Uganda, and ICD, though the amount remains undisclosed. The East African Crude Oil Pipeline will transport up to 246,000 barrels per day from Uganda’s Lake Albert oilfields to Tanzania’s Tanga port for export.EACOP stated that the funding reflects strong financial support for the transformative regional project.By the end of last year, construction was over 50% complete, employing more than 8,000 Ugandans and Tanzanians.
The project, which began last year, is expected to take two years.The 1,443-km, 24-inch buried pipeline will include six pumping stations, two pressure reduction stations, and a marine export terminal with a 3MW solar plant.TotalEnergies, which holds a 62% stake in EACOP, commissioned a review of its land acquisition process last year after allegations of failing to protect burial sites.
TotalEnergies stated its review of the land acquisition process will assess consultation, compensation, relocation, and grievance handling. It will also evaluate efforts to improve affected communities’ living conditions and recommend further actions if needed.Environmental watchdog GreenFaith reported issues like unpaid compensation for burial sites, poor relocation housing, restricted grave access, and inadequate documentation of affected graves.GreenFaith estimates over 2,000 graves in Uganda and Tanzania are affected by the EACOP pipeline, citing TotalEnergies’ data.
It accused the company of disregarding local traditions and global standards, with inadequate grave compensation as the main concern.TotalEnergies rejected GreenFaith’s report, stating it followed World Bank standards, created a heritage management plan, and engaged communities. It said sites were avoided where possible, and precautions taken when unavoidable.TotalEnergies stated that sacred site relocations follow traditional customs, including ceremonies. It denied compensation issues, saying payments align with values set by the Chief Valuer.
By February 2025, over 99% of compensation agreements were paid, 100% of houses built, and 97% of grievances resolved. EACOP’s other owners include Uganda National Oil Co. (15%), Tanzania Petroleum Development Corp. (15%), and China National Offshore Oil Corp. (8%).
