Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Monday, May 23, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
Total's Philippe Groueix and Energy Minister Ruth Nankabirwa sign MOU agreement for crude oil production in Uganda. www.theexchange.africa

Total's Philippe Groueix and Energy Minister Ruth Nankabirwa sign MOU agreement for crude oil production in Uganda. [Photo/Twitter]

AFCON sponsor injects US$10 billion into EACOP

TotalEnergies, China National Offshore Oil Corporation (CNOOC), the governments of Uganda and Tanzania have reached an agreement inject more than US$10 billion in developing and expanding the East Africa Crude Oil Pipeline (EACOP) project.

by Joseph Kangethe
February 8, 2022
in Extractive and Energy, Investing, Tanzania, Uganda
0
Share on FacebookShare on LinkedIn
  • TotalEnergies will develop solar, wind, geothermal, and other renewable technology power projects in Uganda
  • Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, said that the agreement would put the country on the path to first oil in 2025
  • EACOP will create approximately 160,000 jobs during the project’s development
  •   to add a combined installed electricity output capacity of 1 Gigawatt by 2030 to the current 1.2-Gigawatt production.
  • EACOP construction will result in a ifor both countries (Uganda and Tanzania).

The East Africa Crude Oil Pipeline (EACOP) project will see Tanzania and Uganda increase their foreign direct investment (FDI) by 60 per cent when fully implemented.

TotalEnergies, China National Offshore Oil Corporation (CNOOC), the governments of Uganda and Tanzania have reached an agreement to inject more than US$10 billion in developing and expanding the EACOP project.

The agreement was inked in Uganda’s capital, Kampala, as part of the Final Investment Decision (FDI) for the Uganda-Tanzania crude oil pipeline in the Lake Albert region.

Uganda’s Energy Minister Ruth Nankabirwa signed on behalf of the Ugandan government, while TotalEnergies’ General Manager Philippe Groueix signed on behalf of the oil firm.

Read: East African Crude Pipeline project worth $3.5 billion deferred

In an EACOP national content supply development workshop in Uganda, Michael Tiffen, managing director at TotalEnergies, told Next Media Uganda that early last year, Uganda’s president, Yoweri Museveni, Tanzania’s president, Samia Suluhu, and the two oil companies—TotalEnergies and CNOOC—have agreed to start the construction.

The East Africa Crude Oil Pipeline (EACOP) project will comprise the development of oil fields, oil processing facilities and a pipeline network in Uganda. The export pipeline will cut through Tanzania to carry landlocked Uganda’s crude to a port on the Indian Ocean.

crude oil pipeline
TotalEnergies, CNOOC inject US$10 billion in EACOP Pipeline construction. [Photo/oilnewskenya]
TotalEnergies CEO Patrick Pouyanne said that the memorandum of understanding will see the French firm produce Liquefied Petroleum Gas (LPG) and also deploy large-scale renewable energy technologies to identify areas of commercial investment.

Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa said in a speech ahead of the signing that the agreement would put the country on the path to first oil in 2025. She added that EACOP would create approximately 160,000 jobs during the project’s development.

The agreement dictates TotalEnergies will develop solar, wind, geothermal, and other renewable technology power projects in Uganda to add a combined installed electricity output capacity of 1 Gigawatt by 2030 to the current 1.2-Gigawatt production.

TotalEnergies to help Uganda tap the windpower goldmine

Uganda currently has one of the lowest per capita electricity consumptions in the world with 215 kWh per capita per year. The country has a total installed energy capacity of 882MW, according to Energypedia.

Early last year, the Global Wind Energy Council reported that the continent was only tapping 0.01 per cent of its wind power potential.

The main obstacles to wind energy development in Uganda are insufficient wind resource data, high initial investment cost, inadequate research and development, weak infrastructure, and unsupportive policies. The MOU agreement between Uganda and Total Energies could help alleviate these obstacles.

According to the wind resource data published in October 2020 by the World Bank’s International Finance Corporation, the technical wind resource potential on the African continent alone is over 59,000 GW, enough to power the continent’s energy demand 250 times over.

Currently, the total wind power capacity in the continent is over 7 GW, which helps to avoid 10.7 million tonnes of CO2 emissions annually

The project will realize the largest crude oil pipeline in the world, running for 1444km. The signed agreement also targets stimulating trade and investment between the two countries, strengthening their cooperation, and promoting regional integration.

President Samia stated that the project will generate revenue for both countries while also creating short-and long-term employment opportunities for highly skilled and semi-skilled professionals as well as casual laborers, thereby addressing the youth unemployment crisis.

Uganda discovered oil in the Lake Albert basin and has since confirmed the presence of 6.5 billion burrows, which are expected to serve both domestic and international markets for the next 30 years.

The Petroleum Authority in Uganda says that the engineering designs for the whole project are ready, compensation plans for land acquisition have already begun, and procurement for logistics is underway.

crude oil pipeline
Total, Presidents Samia and Museveni sign agreement to construct The EACOP pipeline project. [Photo/EnergyVoice]
Read: Tullow Oil: Crude oil pipeline project still active

Uganda’s Oil Minister, Ssentamu Nankabirwa, says that construction work has already begun in two mining fields, Kingfisher and Tilenga, on the shores of Lake Albert. The two fields are estimated to contain up to six billion barrels of recoverable oil resources.

East Africa’s rapid development has been largely attributed to the capital investment in oil, gas, and manufacturing industries.

EACOP construction will result in a 60% increase in foreign direct investment (FDI) for both countries.

Michael Tiffen said that the project will be constructed and operated by a pipeline company with a shareholding of Uganda National Oil Company (15% of shares), Tanzania Petroleum Development Corporation (TPDC with 15% of shares), TotalEnergies (62%), and CNOOC (8%). The two oil companies have already spent over $4 billion on the infrastructure of the pipeline.

Once produced, the crude oil will be partly refined in Uganda for the local market and the rest exported to the international market through EACOP.

Read: Lack of commitment costs Kenya a slot in EACOP

Tags: CNOOCConstruction of the world's largest crude oil beginsEACOPPesident Samia SuluhuRuth NankabirwaTotalEnergiesTotalEnergies invests in Uganda renewable energy sectorUganda’s Minister of Energy and Mineral Development

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Joseph Kangethe

I am a journalist who is an enthusiastic tech, business and investment news writer from across Africa. There is always something good happening in Africa but most gets lost in the stereotypes. I tell the stories that matter to the Africans for Africa. Have a tip? You can contact me at [email protected]

Related Posts

Six African nations launch the Africa Green Hydrogen Alliance. www.theexchange.africa
Investing

Renewable energy: Six African nations launch the Africa Green Hydrogen Alliance

May 20, 2022
South Africa retailer Pick n Pay to cut US$187 million in costs in 3 years www.theexchange.africa
Investing

South Africa retailer Pick n Pay to cut US$187 million in costs in 3 years

May 20, 2022
Kenya and Tanzania economic gains from friendly diplomatic relations. www.theexchange.africa
Investing

Kenya and Tanzania: Economic gains from ‘relaxed’ diplomatic stance

May 19, 2022
Next Post
Russia's inaugural Africa summit. Russia is expanding brisk business with Africa. www.theexchange.africa

Russia targets doing brisk business with Africa

Serena williams and Nestcoin looking to increase crypto adoption in Africa. www.theexchange.africa

Serena Williams helps African crypto giant, Nestcoin, raise US$6.45 million

www.theexchange.africa

Kenya: EABL’s US$96.8 million bond ranked among Africa’s top 2021 corporate deals

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In