Continental Focus, International Reach

CNOOC Wants Stake in Uganda Pipeline

Tuesday, July 30, 2019

CNOOC, one of the partners in Uganda’s oil development projects, plans to take a stake in an oil pipeline being developed to export Ugandan crude.

Uganda discovered crude oil reserves over a decade ago, but commercial production has been delayed partly because of a lack of infrastructure, such as an export pipeline.

The 1,445 km East African Crude Oil Pipeline (EACOP), costing $3.5 billion, will pass through neighboring Tanzania to the Indian Ocean port of Tanga.

“CNOOC shall participate in the EACOP project,” Aminah Bukenya, spokeswoman for the firm’s Ugandan unit, told Reuters, adding that the level of its equity stake would be determined by the joint venture partners.

CNOOC jointly owns Uganda’s oil fields with Tullow and Total.