The Petroleum Authority of Uganda (PAU) has revealed the detailed commercial structure of the East African Crude Oil Pipeline (EACOP), a joint project between Uganda and Tanzania.
This breakdown aims to provide transparency and clarity for Ugandans, investors, and stakeholders in the oil and gas sector.
Ownership Structure
According to the PAU, the EACOP is owned by a consortium of stakeholders, including:
– TotalEnergies: 62%
– CNOOC: 8%
– Ugandan National Oil Company (UNOC): 15% (representing the Government of Uganda)
– Tanzania Petroleum Development Corporation (TPDC): 15% (representing the Government of Tanzania)
Revenue Generation and Dividend Distribution
EACOP Ltd, the entity formed by the shareholders, will generate revenue through a transportation tariff charged per barrel of crude oil transported.
The dividends will be distributed proportionally to the shareholders’ stakes, ensuring that Uganda and Tanzania, through UNOC and TPDC respectively, receive their fair share.
Cost-Sharing and Transit Fee Exemption
In a significant move, Tanzania has exempted EACOP Ltd from paying a transit fee for the pipeline passing through its territory. This exemption will help facilitate the project’s development and reduce costs for the stakeholders.
The unveiling of the EACOP’s commercial structure therefore marks a significant milestone in the project’s development.
With a clear breakdown of ownership, revenue generation, and cost-sharing, stakeholders can now better understand the project’s dynamics.
As the project progresses, it is expected to generate significant revenue for Uganda and Tanzania, while also contributing to the region’s economic growth and development.
Giving Back To Community
Meanwhile, as part of their Corporate Social Responsibility (CSR) and the commitment to safeguard project-affected areas, EACOP Limited has since donated a chain-link fence to Busanga Primary School in Kakumiro District, improving safety and creating a secure learning environment for the school’s 635 learners.
The fence will safeguard the school grounds, support extracurricular activities, and provide peace of mind to the community.
Speaking at the event, John Bosco Habumugisha, the EACOP Ltd Deputy Managing Director and General Manager Uganda, highlighted the importance of this initiative in strengthening Uganda’s education sector. “This project reflects EACOP’s dedication to addressing community needs while fostering strong partnerships with local authorities and stakeholders,” Habumugisha said while handing over the fence.