OIL SECTOR: EACOP LTD APPLIES FOR CONSTRUCTION LICENSE
By Joel Mugabi
Uganda’s Government has received East African Crude Oil Pipeline Company (EACOP) Ltd’s application for a construction license as the country’s oil sector continues to steadily move towards commercial oil production.
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The construction license sought by the East African Crude Oil Pipeline Company (EACOP) Ltd, the firm spearheading the development of Uganda’s crude oil export pipeline, will enable the company to kick start the development of the 1,443km, 24-inch diameter heated and buried crude oil pipeline that will start from Kabaale, Hoima in Uganda and connect to Chongoleani, Tanga in Tanzania.
The application for the license was filed before Ruth Nankabirwa’s Ministry of Energy and Mineral Development on Friday, July 01. EACOP Ltd’s General Manager Martin Tiffen, who was flanked by his deputy John Bosco Habumugisha and Compliance Lead for Uganda Lawrence Ssempanji, said all is set for the works on the pipeline, which will be the longest heat traced pipeline in the world, to commence.
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Upon receipt of the application, Honey Malinga, the Acting Director of Petroleum at the Ministry, pledged continued support by the Government of Uganda to ensure seamless implementation of EACOP. He assured the company that its application will be processed within 180 days.
“I want to thank the company for preparing the application for the construction license. The Ministry will process the application in accordance with the law, and we look forward to timely commencement of pipeline construction,” said Malinga.
The Acting Director of Petroleum further urged the company to pay attention and swiftly address the issues raised from time to time by the Government, communities, local leadership, and other stakeholders.
The Inter-Government Agreement (IGA) for the crude export pipeline was signed in May 2017. Consequently, the Front-End Engineering Design (FEED) for the EACOP was carried out and approved by the Petroleum Authority of Uganda in October 2020. The Environmental and Social Impact Assessment (ESIA) studies for the EACOP were approved, with the National Environment Management Authority (NEMA) issuing the certificate in December 2020.
The licensed upstream oil companies leading the development of the pipeline in Uganda are: Total Energies with 62 per cent shares; CNOOC Uganda with eight per cent; Uganda National Oil Company (UNOC) with 15 per cent, and the Tanzania Petroleum Development Corporation (TPDC) with 15 per cent. It should be remembered that these shareholders announced a Final Investment Decision (FID) on February 01, 2022, signifying EACOP Ltd’s commitment to financing the project.
Meanwhile, plans to secure the land requirements for the EACOP in Uganda – comprising construction camps covering 172 acres; pipeline Right of Way (RoW); orphan land covering 2,745 acres; and feeder roads covering 182 acres – are in advanced stages. (For comments on this story, get back to us on 0705579994 [whatsapp line], 0779411734 & 0200900416 or email us at firstname.lastname@example.org).