The African Energy Chamber will participate at the upcoming 10th East African Petroleum Conference and Exhibition, set to take place 9-11 May 2023.
In order to make energy poverty history by 2030, Africa needs to develop large-scale infrastructure projects that support the transportation and export of oil and gas. As an advocate for the development of such projects, the African Energy Chamber (AEC) – led by Executive Chairman NJ Ayuk – will participate at the upcoming East African Petroleum Conference and Exhibition from May 9-11, making a strong case for the development of the region’s most critical project: the East African Crude Oil Pipeline (EACOP).
The AEC’s participation at this important event underscores the organization’s commitment to fostering energy security and economic growth across the continent. At the heart of the AEC’s agenda lies the transformative EACOP, a project that not only plays a pivotal role in reshaping the energy landscape of East Africa but also serves as a key catalyst for unlocking vast exploration opportunities across the continent. With an alarming 600 million people living in energy poverty across the continent, the EACOP stands as a crucial and necessary solution for addressing this pressing issue. With an impressive length of 1, 443km, the EACOP is the largest pipeline in the region. Set to be completed in 2025, this remarkable infrastructure will possess the capacity to transport 246,000 barrels of crude oil per day from Uganda to the port of Tanga in Tanzania. Once arrived, the oil will be efficiently channeled to global markets, ushering in a new era of international trade and export possibilities.
The EACOP project brings together a consortium of notable stakeholders. TotalEnergies holds the majority stake of 62%, followed by the Uganda National Oil Company (15%), the Tanzania Petroleum Development Corporation (15%), and the China National Offshore Oil Corporation (8%). This collaboration signifies the growing interest of major industry players in the untapped oil and gas potential of the region. The involvement of companies like TotalEnergies and China National Offshore Oil Corporation not only brings financial investment but also fosters knowledge-sharing, technological advancements, and best practices, further supporting the growth of exploration and production activities in the region.
Accordingly, the construction of the EACOP holds immense promise for the economic development of the region, as it would create thousands of jobs, provide employment opportunities for local communities, and contribute to poverty reduction. The influx of billions of dollars into the economies of Uganda and Tanzania would spur economic growth, allowing for increased investments in critical sectors such as healthcare, education, and infrastructure. The resulting boost in tax revenue would enable governments to enhance public services and implement social programs, benefiting citizens directly.
Moreover, the pipeline project demonstrates the potential for collaboration and partnership between nations. By working together, Uganda and Tanzania can leverage their respective strengths and resources to maximize the benefits of their oil and gas reserves. This united approach fosters regional integration and paves the way for increased trade and cooperation, unlocking new avenues for prosperity in East Africa and moving one step closer to making energy poverty history by 2030.
The establishment of the EACOP holds substantial opportunities for E&P in East Africa. By offering a dependable and efficient method of transporting oil, the challenges and expenses associated with oil transportation are reduced, leading to increased feasibility and profitability of E&P projects. This improved accessibility to larger markets enables companies operating in the area to export their resources more effectively, ultimately attracting additional investments in E&P activities. What’s more, the EACOP will act as a conduit for unlocking previously uneconomical reserves, paving the way for extensive exploration activities throughout East Africa. With the potential to discover new hydrocarbon deposits in countries such as Kenya, Zambia, the Democratic Republic of Congo and beyond – all of which represent frontier markets -, the EACOP will drive the region’s energy industry forward, laying the foundation for the monetization and maximization of oil and gas in Africa.
During the conference, the AEC will drive the narrative that for Africa to effectively address energy poverty and distribute its resources to those in need, it is imperative to have infrastructure such as pipelines to transport the continent’s hydrocarbon reserves.
“As we witness the revitalization of the ‘Drill, Baby, Drill’ spirit in Uganda, we stand on the brink of unlocking tremendous energy security. The EACOP is a testament to the opportunities that lie ahead. It guarantees safe oil transportation and acts as a catalyst for robust economic activity,” states Ayuk, adding that, “This pipeline will create thousands of jobs, breathing new life into the economies of Uganda and Tanzania. The Chamber strongly supports President Yoweri Museveni of Uganda and Ruth Nankabirwa Ssentamu, Minister of Energy, in the pursuit of energy security. This project is a key step towards moving both Uganda and the entire East African region away from foreign aid, ensuring that oil and gas become agents of positive change rather than cautionary tales of missed opportunities.”
During the East African Petroleum Conference and Exhibition, the AEC will continue to drive its support for the development of the EACOP, while touching on topics such as exploration and production, increasing investment in oil and gas and the role East Africa will play in making energy poverty history by 2030. Inherently, the EACOP project symbolizes a significant milestone in the quest for regional energy development, with its remarkable length and substantial capacity setting the stage for enhanced connectivity and prosperity. By efficiently linking Uganda’s oil reserves to the global market, the pipeline opens avenues for economic growth, foreign investment, and collaboration.