Uganda doubles oil industry budget with eyes on EACOP 2

Uganda doubles oil industry budget with eyes on EACOP

KAMPALA, June 14, 2024 – The government of Uganda has more than doubled its budget for oil industry spending for the coming year, with investment primarily slated for the East African Crude Oil Pipeline (EACOP), Bloomberg reported on Friday.

Uganda will spend USD 246 million in the year ending June 2025, compared to around USD 120 million in the previous year.

The news was delivered by Finance Minister Matia Kasaija, speaking on Thursday in Kampala. The minister said funds would primarily be directed to EACOP, a 1,443-kilometre pipeline designed to carry crude from Uganda’s Lake Albert upstream projects to the Tanzanian port of Tanga.

 

EACOP will be the world’s longest electrically heated pipeline, enabling Uganda to export its viscous hydrocarbons. Its project company is held by TotalEnergies with 62%, Uganda’s UNOC and Tanzania’s TPDC with 15% each, and China’s CNOOC with 8%.

Read our latest interview with Martin Tiffen, managing director of the EACOP company.

Funds will also go towards supporting the development of the country’s first refinery, a 60,000-bpd facility.

Uganda is estimated to hold 1.4 billion barrels of recoverable reserves.

Photo of Finance Minister Matia Kasaija delivering the budget speech courtesy of the Ministry of Finance on X.

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