Kampala, March 28, 2023:- Uganda Investment Authority (UIA) has, March 28, 2023, issued an investment license to the East African Crude Oil Project (EACOP), with an investment value of four billion dollars.
UIA Director General, Robert Mukiza, handed over the investment license to the Deputy Managing Director of EACOP Uganda branch, John Bosco Habumugisha.
The EACOP is the single biggest investment project so far licensed by UIA since 1991.
The ceremony at UIA headquarters in Kampala was witnessed by UIA Board Member Angelo Izama and representatives from the shareholders Uganda National Oil Company (UNOC) and Joint Venture Partners Total Holdings International B.V., CNOOC Uganda Limited and Tanzania Petroleum Development Corporation (TPDC).
Uganda National Oil Company (UNOC) has 15 percent shareholding, Total Holdings International B.V. 62 percent, CNOOC Uganda Limited eight percent and Tanzania Petroleum Development Corporation 15 percent.
According to Mukiza, UIA is fully supported of Uganda’s single more valuable and important oil and gas investment.
The EACOP, also known as the Uganda-Tanzania Crude Oil Pipeline, is a 1,443 km crude oil pipeline that will transport crude oil from Uganda’s oil fields to the Indian Ocean Port of Tanga in Tanzania.
On completion, EACOP will be the longest heated crude oil pipeline in the world, directly employ 14,000 people, indirectly employ 45,000 people and induced employment of 105,000 people.
The pipeline’s benefits for Ugandans include direct employment of 14,000 people, indirect employment of 45,000 people and induced employment of about 105,000 people.
Of the direct employment, 57 percent are expected to be for Ugandans, which is expected to result in an estimated 48.5 million-dollar annual payment to Ugandan employees.
EACOP will also translate into capacity building of Ugandans, as well as transfer of much needed technology, knowledge and skills. Ugandan companies will also benefit from partnerships with global oil players.
The investment project will also see provision of a number of goods and services ring-fenced for Ugandan companies.
EACOP is also expected to de-risk all other upcoming projects including the refinery and the new exploration projects, in addition to evacuation options for future oil discoveries in new exploration areas.