Even though the European Union (EU) parliament’s resolution to stop the construction of the East African Crude Oil pipeline (EACOP) is not legally binding, the move has reignited colonial sentiments, with Uganda, Tanzania, and pan Africanists making an outright rejection of neo-colonialism.
The September 15 2022 resolution was based on claims that Uganda and Tanzania have human rights violations records while the project will degrade the environment. Stopping the EACOP project by implication means bringing the entire oil and gas developments attained at the upstream and midstream to a grinding halt.
Entire Uganda’s oil and gas project is a $ 15 billion project that is moving as per schedule. The projects are: EACOP for evacuating crude to international markets, 60,000 barrels of oil per day refinery, a second international airport, and an industrial park at Kabaale in Hoima. Also to be constructed are: Central Processing Facilities (CPF), feeder pipelines, roads and camps. First oil is expected in 2025, meaning that a one-year stop to the project pushes the production timelines forward, while increasing the costs of the project. This could have legal implications as well, with the overall loser being Ugandans based on the Production Sharing Agreements signed between the government and international oil companies.
EACOP is a $3.55 billion project. It is a 1, 443km export pipeline that will transport crude oil from Kabaale, Hoima City in western Uganda to the Chongoleani peninsula near the Tanga port in Tanzania. The proposed 24-inch diameter pipeline will export 216,000 barrels of crude oil per day at peak production.
EACOP has positioned Tanga port, previously unpreferred, to become Uganda’s port
of choice. The pipeline is expected to open other opportunities besides crude oil exports because of state-of-the-art port facilities, a shorter distance to Kampala compared to the ports of Mombasa in Kenya and Dar Es Salaam in Tanzania, and the opportunity to expand other cross-border services.
EACOP is a joint venture project represented by Uganda National Oil Company (UNOC) 15%, Tanzania Petroleum Development Corporation (TPDC) 15%, TotalEnergies 60%, and China National Offshore Oil Corporation (CNOOC) 8%.
Tanzania and Uganda have hit back at the EU’s resolution 2022/2826/ RSP arguing that all due procedures include sound and approved Environment Social Impact Assessment in the Ugandan case and a separate human right assessment in Tanzania.