The East African Crude Oil Pipeline (EACOP) project has reached a major financial milestone, securing the first tranche of external financing from a syndicate of regional financial institutions.
This development was made known Wednesday, March 26, 2026, in a press release by EACOP Ltd, the company overseeing the project and marks significant progress in constructing Africa’s longest heated crude oil pipeline.
The company confirmed that the financing has been provided by key financial institutions, including the African Export-Import Bank (Afreximbank), The Standard Bank of South Africa, Stanbic Bank Uganda, KCB Bank Uganda, and The Islamic Corporation for the Development of the Private Sector (ICD).
The financing deal is a crucial step forward for the $5 billion pipeline project, backed by a consortium of shareholders: TotalEnergies (62%), Uganda National Oil Company Limited (UNOC – 15%), Tanzania Petroleum Development Corporation (TPDC – 15%), and China National Offshore Oil Corporation (CNOOC – 8%).
Progress on the construction of the pipeline had already surpassed the halfway mark by the end of 2024. As of November 2023, the first 100 kilometres (62 mi) of the pipes were ready for shipment from the factory in China to Tanzania.
The report states that the project currently engages over 8,000 Ugandan and Tanzanian workers in various operations.
Once operational, the EACOP will transport up to 246,000 barrels of crude oil per day from Uganda’s regions of Kabaale and Hoima to the Tanzanian port of Tanga for export.
The pipeline spans a total of 1,443 kilometers of 24-inch insulated pipeline, including 296 km in Uganda and 1,147 km in Tanzania, and features six pumping stations, two pressure reduction stations, and a marine export terminal equipped with a 3 MWp solar plant.
The EACOP oil infrastructure means a lot for the two eastern African countries of Uganda and Tanzania, both of which are on the precipice of a major economic development thanks to their huge oil and gas resources.
Uganda eagerly looks forward to pumping its first commercial oil this year.
In January, the country began plans for its third round of petroleum exploration licenses in the fiscal year beginning in July, 2025.
Similarly, Tanzania recently announced plans to launch the country’s first oil and gas licensing round since 2014.
The planned round will offer 26 exploration blocks located in Lake Tanganyika and the Indian Ocean.
