The Uganda National Oil Company (UNOC) – the country’s state-owned oil corporation – has joined the African Energy Week (AEW): Invest in African Energy conference as a Gold Sponsor. Taking place November 4-8 in Cape Town, the event serves as the largest event of its kind on the continent, uniting global financiers and technology providers with African projects. UNOC’s sponsorship reflects the company’s commitment to attracting investment as major projects prepare for construction.
In collaboration with project partners TotalEnergies, CNOOC and the Tanzania Petroleum Development Corporation, UNOC is spearheading the development of the East African Crude Oil Pipeline (EACOP). A 1,443km infrastructure project linking Uganda’s Tilenga and Kingfisher oilfields to Tanzania’s Port of Tanga, the project represents the single-largest investment in both Uganda and Tanzania. UNOC’s participation at AEW: Invest in African Energy 2024 paves the way for greater dialogue and engagement with regards to Ugandan oil and gas projects.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
EACOP aims to start exporting crude by the end of 2025. Currently, the development of civil works such as pumping stations, pipe yards and storage facilities are progressing rapidly, with Uganda receiving the first shipment of coated line pipes for the project this October. The project – estimated to cost $5 billion – features a 296-km section in Uganda and a 1,147-km section in Tanzania. With a capacity to transport 246,000 barrels per day (BPD), the project directly connects Uganda’s oilfields with international markets, providing a new source of revenue for the country. In addition to transporting Uganda crude, the project serves as a vital route for regional neighbors such as the Democratic Republic of the Congo (DRC). Uganda is currently engaged in discussions with the DRC to transport crude from oilfields in the Albertine Graben basin following the start of production.
EACOP has already raised $2 billion in equity funding from its developers and is seeking an additional $3 billion in debt financing. Chinese financiers have shared their interest in supporting the project, with Uganda’s Ministry of Energy and Mineral Development travelling to Beijing in April 2024 to discuss investment options. In June 2024, UNOC invested an additional $35 million to help bridge the gap between equity and debt financing in a testament to getting the project off the ground. The topic of financing African oil and gas projects will be top of the agenda at AEW: Invest in African Energy 2024, with UNOC’s participation
Beyond the Tilenga and Kingfisher fields, Uganda is promoting exploration in various other regions of the country. Preliminary petroleum exploration studies are currently being conducted in the Moroto-Kadam and Kyoga basins, targeting play-opening discoveries. The studies aim to diversify the country’s oil production by bringing new fields online. To support exploration, the country increased its annual budget for the oil and gas sector from $120 million to $246 million for the 2024/2025 period. However, significant opportunities remain, with Uganda representing one of the final frontiers for oil and gas exploration worldwide.
“One of the biggest challenges African oil and gas projects face today is the lack of financing. In the current energy transition climate, global capital expenditure has become increasingly more competitive, with pressures mounting to reduce funding for fossil fuel projects. Despite this, projects such as EACOP are proving resilient, and it is all due to the efforts by the state-owned UNOC,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
UNOC’s support for and participation at AEW: Invest in African Energy 2024 reflects its dedication to driving Ugandan oil and gas projects forward. Throughout the event, UNOC is expected to engage with African policymakers, global investors and projects developers, promoting upcoming investments and strategic opportunities.
Distributed by APO Group on behalf of African Energy Chamber.
