EACOP

Known for many years as an area where natural oil seepages occurred, oil was first discovered by drilling in the Lake Albert area of Uganda in 2006. This first discovery led to an extensive period of further exploration and appraisal which was completed in 2014.

EACOP is being constructed in parallel with two upstream development projects which are not part of EACOP development and investment, known as Tilenga and Kingfisher respectively. Each development will consist of a Central Processing Facility (CPF) to separate and treat the oil, water and gas produced by the wells. Kingfisher will have 4 well pads and a CPF with a peak daily capacity of 42000 bbl/d. Tilenga has 31 wellpads and a 204000 bbl/d CPF.

Tilenga and Kingfisher CPFs will be connected by feeder lines to the starting point of EACOP at Kabaale. Here the oil will be metered and then comingled into a single stream. The Ugandan Refinery project has a right of first call to 60,000 bbl/d, with the remainder of the oil being exported via EACOP.

The pipeline route via Tanzania was confirmed in April 2016 at a summit with the East African Heads of State. In the period 2016-2018 the EACOP route was studied and narrowed down to its final width of 30 metres, allowing to then initiate land surveys and the Environmental and Social Impact Assessments.

This EACOP will be designed, constructed, financed and operated through a dedicated Pipeline Company with the same name. The shareholders in EACOP are affiliates of the three Upstream joint venture partners (the Uganda National Oil Company, TotalEnergies E&P Uganda and CNOOC Uganda) together with the Tanzania Petroleum Development Corporation. Shareholdings are TotalEnergies 62%, UNOC and TPDC 15% each and CNOOC 8%.

EACOP has established a commercial and legal framework including

1. An InterGovernmental Agreement between the Governments of Uganda and Tanzania setting out common principles and signed on 26th May 2017
2. Two Host Governments Agreements between EACOP and the Governments of Uganda and Tanzania, signed on 11th April 2021 and 20th May 2021 respectively. These HGAs cover matters such as Land, HSE standards, fiscal regime, Authorisations, Decommissioning and recourse to dispute mechanisms. Where required, the HGAs are supported by legislation in both Uganda and Tanzania
3. The EACOP Shareholders Agreement which became effective the 15th February 2022 between the four Shareholders setting out the governance of the EACOP Company. EACOP Co is a UK registered entity, fiscally resident in Uganda. It will pay its taxes and duties in Uganda and Tanzania.
4. The Transport and Tariff Agreement setting out the terms and conditions for EACOP to transport oil. Under the TTA, EACOP will receive an income in the form of a tariff charged for each barrel of oil transported. EACOP takes custody of the oil at the flange immediately after the Upstream fiscal metering until the loading flange on the marine jetty in Tanga bay. The ownership of the oil remains with the Upstream Shippers (Government of Uganda, TotalEnergies E&P Uganda, CNOOC Uganda and UNOC)