EACOP(East African Crude Oil Pipeline),1445 km long running from Hoima to Tanga in Uganda and Tanzania respectively is a magnificent head start to tremendous growth and development. The total cost of the project is said to be $3.5 billion.
Government agreements are yet to come to conclusions for EACOP on matters such as arbitration, negotiation of revenue and taxes and the venue for such a negotiation.
The EACOP will need to have conformity on the below agreements:—
1. between Tanzania – Uganda
2. between the government of Tanzanian and the joint venture oil companies
3. Uganda and the joint venture oil companies.
China National Offshore Oil Company, Total E&P and Tullow Oil Uganda have opted to be Joint venture oil partners in this project.
Companies and investors are seeing EACOP as a very lucrative opportunity.That being said, the FDI is expected to increase by 60% for Uganda and Tanzania at the initial construction phase itself in June 2019.