FIRST OIL: EACOP hosts Bank of Uganda Governor, Judiciary heads

Hoima, Uganda | NEWS CORRESPONDENT | Bank of Uganda Governor (BOU) Dr Michael Atingi-Ego has said the progress of the East African Crude Oil Pipeline (EACOP) is critical to Uganda’s macroeconomic outlook, noting that government revenue projections and export earnings are closely tied to the successful delivery of the country’s oil and gas projects.

“If you look at the 2026/27 budget and all the projections we have in our balance of payments, they are all hinged on what you guys are doing here. I came to confirm that this is true because, in the unlikely event that it is not, we have to go back to the drawing board. I am very, very impressed,” Atingi-Ego said.

He said this on Wednesday as EACOP hosted a high-level delegation that included Chief Justice of Uganda, Dr Flavian Zeija, at Pump Station One in Kabaale, Hoima District, where they received a firsthand update on the progress of the pipeline ahead of Uganda’s first oil.

Pump Station One is the first of six pump stations along the East African Crude Oil Pipeline and will receive crude oil from the Tilenga and Kingfisher development areas before it is transported through the 1,443-kilometre heated pipeline to the export terminal in Tanga, Tanzania.

The governor commended EACOP’s commitment to local content, noting that building the capacity of Ugandans to take up critical roles in the sector will create long-term value for the country.

“I am very, very much impressed that I don’t see any white face here. These are all Ugandans, and we really thank the Head of State for building local capacity in this area. Thank you for all that, and God bless you all,” he added.

The delegation toured the facility and received updates on the construction of the 1,443-kilometre pipeline and its readiness to support Uganda’s commercial oil production. The visit brought together Justices of the Supreme Court, officials from the Judiciary, the Uganda Revenue Authority (URA), Uganda National Oil Company (UNOC), the Petroleum Authority of Uganda (PAU) and EACOP shareholders.

Speaking during the visit, EACOP Deputy Managing Director, John Bosco Habumugisha, said the project has now reached 91 percent overall completion against a planned progress of 94 percent, adding that the entire pipeline has already been welded.

“As we speak, the entire pipeline is generally welded. We should have been at 94 percent, but there are many factors. The conflict in the Middle East affected many things. Some of our cargo was in Dubai, so we lost time because of that conflict and had to divert some of our cargo to Oman. Then recently, Ebola also affected us because flights from some countries could not come. I think we are now in a better state with the announcement that the country is Ebola-free,” Habumugisha said.

He noted that environmental restoration is progressing alongside construction, adding that once completed, communities will hardly notice where the buried pipeline passes because the land will be restored to its original condition.

Habumugisha also highlighted the extensive legal and commercial work that laid the foundation for the project, including the negotiation of the Intergovernmental Agreement between Uganda and Tanzania, Host Government Agreements and shareholder agreements that enabled the development of the pipeline.

“This journey has involved a lot of legal work to define the oil and gas industry. The pipeline is an enabler infrastructure that allows Uganda to export its crude oil to the international market while supporting the country’s broader oil and gas value chain,” he said.

Chief Justice Dr. Flavian Zeija said the visit had given the delegation an opportunity to witness firsthand the progress being made on one of Uganda’s most strategic infrastructure projects and applauded EACOP’s commitment to promoting local content.

“Out there, they were saying there is no oil. That it was already sold and exploited long ago. That’s what I see on social media. But you can see there is a lot of work going on. Thank you so much for your effort, especially insisting on local content. I can see the evidence is clear,” Zeija said.

The visit comes as Uganda’s oil and gas sector enters its final phase of construction ahead of first oil, with EACOP remaining a key piece of infrastructure supporting the country’s journey to commercial oil production.