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Uganda's Oil Pipeline Project Halted Amid Tullow-Total Deal Collapse

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 5 September 2019.

Published on September 5, 2019, a deal between Tullow Oil and Total, a French energy company, has collapsed, leading to the suspension of Uganda's oil pipeline project.

The East African Crude Oil Pipeline (EACOP), a $3.5 billion project, was set to transport oil from Uganda to the Indian Ocean port of Tanga in Tanzania.

However, the project has been put on hold after Tullow Oil's plan to sell a stake in the project to Total and China's CNOOC was called off last week due to a tax dispute with the Ugandan authorities.

According to an industry official, all EACOP activities, including tenders, have been suspended until further notice.

Uganda discovered crude oil reserves about 13 years ago, but commercial production has been delayed due to a lack of infrastructure, such as an export pipeline.

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