Tanzania defends its role in EACOP project, citing economic benefits

Tabora. The government has defended Tanzania’s involvement in the East African Crude Oil Pipeline (EACOP) project, saying its execution is consistent with the nation’s broader interests and complies with existing laws and bilateral agreements.

The Deputy Permanent Secretary in the Ministry of Energy (Oil and Gas), Dr James Mataragio, made the remarks on July 28 during a tour of the project’s implementation in Nzega District, Tabora Region, where he inspected a thermal insulation plant preparing pipeline materials destined for the crude oil route between Hoima in Uganda and Chongoleani in Tanga.

He observed that the project is set to provide significant benefits, including local employment opportunities, an increase in national income, and the participation of local companies in providing services during EACOP’s execution.

Nearly 9,200 local jobs had been created so far, with 75 percent of those going to Tanzanian nationals.

The government, through the Tanzania Petroleum Development Corporation (TPDC), was closely monitoring the project to ensure national interests were upheld throughout, he added.

And now that 100 percent of the project’s financing has been secured, it paves the way for accelerated progress.

The entire pipeline construction has reached 65 percent completion and was expected to cost approximately $5.65 billion.

“The ministry of Energy, through TPDC, is overseeing Tanzania’s participation in the EACOP project in accordance with existing legal frameworks. We are pleased with the pace and quality of implementation,” Dr Mataragio said.

He said the application of anti-corrosion technology at the insulation facility was key to ensuring the long-term safety and integrity of the pipeline.

Construction activities are currently underway in several regions, including Kagera, Geita, Tabora, Singida, Dodoma, Manyara, and Tanga. Dr Mataragio said these works include the development of four pump stations to maintain flow pressure and two pressure reduction stations, with the latter now 55 percent complete.

“Beyond employment, local councils have collected over Sh60 billion from the project in the form of land rent, service levies, and various permit fees,” Dr Mataragio added.

EACOP is a joint undertaking between Tanzania and Uganda, each holding a 15 percent stake.

TotalEnergies owns 62 percent of the project while China National Offshore Oil Corporation (CNOOC) has an 8 percent share. Completion is slated for July 2026.