Oil & Gas

03 Nov 2020

Total Signs Pact with Tanzania for its EACOP Pipeline Construction Project

03 Nov 2020  by   
Total has announced that it has reached an agreement with the Tanzanian government for its EACOP pipeline project in the country. This is an important step that will allow the company to effectively start construction work on the 1,445 km long conduit.

On October 27, 2020, the French group Total signed an agreement with the State of Tanzania (HGA), for the construction of the East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda to the port of Tanga in Tanzania.

This agreement is essential for the effective start of work and covers various points, namely the rights and obligations of the State, the duties of investors, environmental standards and other relevant standards, liability, the legal framework, arbitration and project closure.

Among others, the signing of the HGA paves the way for negotiations of other important agreements such as the shareholders agreement (SHA), and the agreement on transport and tariffs.

In addition, you should know that the final investment decision (FID) for the development of the project will be taken by December 2020 or the end of January 2021.

Despite the intervention of groups of French and Ugandan activists who believe that this project does not meet certain environmental criteria, construction of the pipeline is expected to start in the first quarter of 2021 at a cost of $ 3.5 billion, and will last around 3 years and a half.

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