A Memorandum of Understanding (MoU) has been signed between EACOP Limited and the Government of Tanzania recently that is expected to bolster the oil and gas sector in Uganda. The agreement, facilitated through the Ministry of Home Affairs, outlines project security commitments in Tanzania, ensuring a robust security approach that adheres to international human rights standards and Tanzanian laws.
This MoU marks a significant milestone for the East African Crude Oil Pipeline (EACOP) project, demonstrating EACOP’s commitment to upholding human rights and international standards. The agreement provides a framework for cooperation between the Government of Tanzania and EACOP, ensuring the security of the project, its personnel, assets, and the general public.
Boosting Uganda’s Oil and Gas Sector
The EACOP project is a critical component of Uganda’s oil and gas development, with the pipeline set to transport crude oil from Uganda to the port of Tanga in Tanzania. The project is expected to have a significant impact on Uganda’s economy, generating revenue and creating employment opportunities.
The MoU is expected to enhance the security of the pipeline, reducing the risk of disruptions and ensuring a stable supply of crude oil. This, in turn, will boost investor confidence in Uganda’s oil and gas sector, attracting more investment and driving economic growth.
Uganda’s Oil and Gas Development
Uganda’s oil and gas sector has been gaining momentum in recent years, with several projects underway. The Tilenga and Kingfisher projects, located in the Albertine Graben, are expected to produce 230,000 barrels of oil per day, making Uganda a significant oil producer in the region.
The Uganda Refinery Project, valued at USD4 billion (about TZShs14.7 billion), is also underway, with the refinery set to process 60,000 barrels of oil per day. The project is expected to transform Uganda’s energy security profile, reducing reliance on neighboring countries for fuel supplies ².
Therefore, the MoU between EACOP Limited and the Government of Tanzania is a significant step forward for Uganda’s oil and gas sector. By ensuring the security of the EACOP project, the agreement is expected to boost investor confidence, drive economic growth, and enhance Uganda’s energy security profile.