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EACOP Financing Shifts to China

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Additionally, CPP has taken over the management of the coating plant for the pipes and fittings while China Petroleum Engineering and Construction Company has inked a deal with TotalEnergies for the build-up of ground facilities at the Tilenga oilfield.

As Chinese companies take over many of the contracts associated with the development of the EACOP, Uganda and Tanzania are expected to turn to Beijing as other investors withdraw. Set to become the longest heated oil pipeline in the world, China’s financing is poised to offer new life to the mega project, which is expected to transport 216,000 barrels of oil per day from the Tilenga and Kingfisher oilfields in the Lake Albert Basin of Uganda to Tanzania’s Tanga Port.

TotalEnergies and Ugandan Government officials maintain that the project remains on track, with the project expected to undertake land acquisition planning; contract awards; and detailed EPC works between 2022 and 2025, with first oil production and export due for 2025.

The shareholders in the project include TotalEnergies (62%), the Uganda National Oil Company (15%), the Tanzania Petroleum Development Corporation (15%), and the China National Offshore Oil Corporation (8%).

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Matthew Goosen

Matthew Goosen

Matthew Goosen is a Video Editor and Content Writer at Energy Capital & Power. He holds an Honours Degree in Film and Media Studies at the University of Cape Town and is currently undergoing his Masters Degree. Born in Pretoria and raised internationally, he has been living in Cape Town since 2013.