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SNG: Uganda, Tanzania move to tighten oversight of $5bln oil pipeline

By Zawya

By Staff Writer

Uganda and Tanzania are stepping up coordination on their multibillion-dollar energy investments, with the East African Crude Oil Pipeline (Eacop) nearing completion and the two countries positioning themselves as a regional hub for petroleum and gas supplies.

Ugandan President Yoweri Museveni on Wednesday held talks with Tanzania’s Vice-President Deogratius Ndejembi at State House Entebbe, where the two sides agreed to deepen institutional cooperation in overseeing the 1,443km pipeline linking Hoima in western Uganda to the Chongoleani peninsula in Tanzania’s Tanga port.

Ndejembi led a political and high-level technical delegation to the meeting, which focused on standardising operational oversight of the project.

Prior to his appointment as vice president in August, Ndejembi served as Tanzania’s Energy Minister, giving him first-hand experience of the project’s development.

The Tanzanian technical delegation comprised James Mataragio, Permanent Secretary for Petroleum in the Ministry of Energy; Goodluck Shirima, Commissioner for Oil and Gas; and Mussa Makame, Managing Director of the Tanzania Petroleum Development Corporation (TPDC), which holds a 15 percent stake in Eacop.

Others were Tanzanian Deputy Minister for Foreign Affairs and East African Cooperation Dr Ngwaru Maghembe and Tanzanian Ambassador to Uganda Maj-Gen Marco Gaguti. Uganda was represented by Junior Minister for Regional Affairs Haruna Kyeyune Kasolo and its High Commissioner to Tanzania, Fred Mwesigye.

According to the Ugandan presidency, the discussions centred on strengthening cross-border cooperation in monitoring project expenditure, improving revenue collection tracking, and sharing data on environmental and resource governance.

Official projections from the Uganda National Oil Company (Unoc) and the Ministry of Finance estimate that Eacop could generate $20 billion over its 25-year lifespan, translating into average annual revenues of $800 million across the project.

Unoc and TPDC are each projected to receive about $400 million a year over the pipeline’s lifetime, reflecting their respective 15 percent shareholdings. The remaining equity is held by the upstream joint venture partners in Uganda’s Lake Albert oil projects – TotalEnergies (62 percent) and China’s CNOOC (8 percent).

The pipeline, the world’s longest heated crude oil export system, has nevertheless faced sustained opposition from environmental groups over its passage through ecologically sensitive areas, including rivers, wetlands and forests in both countries.

Beyond crude exports, Kampala and Dodoma are also pursuing wider energy infrastructure cooperation. In August, the two governments signed a memorandum of understanding with a subsidiary of global commodities trader Vitol to develop an energy hub in Tanga.

The proposed hub could reshape the region’s energy logistics through investments in refining, storage and transportation, further strengthening the strategic energy partnership between the two neighbours.

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