East African Crude Pipeline Races Toward Completion Despite Fierce Opposition
The controversial East African Crude Oil Pipeline (EACOP) has reached 64.5% completion and is expected to finish within a year, despite facing sustained opposition from human rights groups and environmental activists. Developers have invested $3.6 billion to date in what will become the world’s longest electrically heated crude oil pipeline, spanning 1,443 kilometers from Uganda’s oilfields to Tanzania’s Port of Tanga.
The project’secured crucial funding’In march with a $1 billion syndicated loan from regional lenders including Stanbic Bank, KCB Bank, Standard Bank, Afriexim Bank, and the Islamic Cooperation for the Development of the Private Sector. This financing breakthrough came after numerous international investors withdrew due to environmental and human rights concerns, with 43 banks and 30 insurers publicly committing not to support the project.
EACOP is jointly owned by TotalEnergies (62%), China National Offshore Oil Corporation (8%), Uganda National Oil Company (15%), and Tanzania Petroleum Development Corporation (15%). The pipeline will connect Uganda’s Tilenga and Kingfisher oilfields to international markets, with crude production set to commence this year.
However, the project remains highly controversial, with Human Rights Watch reporting potential displacement of over 100,000 people, while TotalEnergies acknowledges affecting 19,262 stakeholders through land acquisition covering 6,400 hectares. Environmental activists continue protesting under the #StopEACOP movement, citing climate concerns and threats to critical water sources including Lake Victoria, which serves 40 million people.
Source: Oilprice.com
