11 Social Licence to Operate in the Energy Transition Era …
349
Tanzania and Uganda signed an intergovernmental agreement (IGA) for
the construction of the East African Crude Oil Pipeline (EACOP).
21
EACOP will transport crude oil from Uganda’s oil fields to the
Tanga port in Tanzania. The Project partners comprise of the Tanzania
Petroleum Development Corporation (TPDC), the Uganda National
Oil Corporation (UNOC), France’s Total, China’s CNOOC and the
UK’s Tullow Oil. The proposed Uganda–Tanzania pipeline will be
1,443 km long and will cost about USD 3.55 Billion. It will have the
capacity of carrying 200,000 barrels per day.
22
However, the project has suffered delays, including most recently, a
suspension due to a stalled sale of Tullow’s stake to Total and CNOOC.
The delay in the stake sale has been caused by a tax dispute with the
Government of Uganda.
23
In natural gas, operations occur in the areas of Mtwara and Lindi.
A total of 67 wells for both exploration and development were drilled
between 1952 and 2013. Five (5) oil and gas companies are undertaking
onshore and offshore natural gas exploration activities in Tanzania. These
are Ophir Energy, BG Group (BP), Equinox, Exon Mobil and Aminex.
Natural gas annual production increased from 5.2 billion cubic feet
(BCF) in 2006 to 35.1 BCF in 2013. Most of the natural gas is used
domestically for electricity generation.
24 Natural gas is a cleaner form of
energy than petroleum or coal. Further, in 2015, it was estimated that
21 “Tanzania And Uganda IGA”. 2017. Eacop.Com. http://eacop.com/publication/view/ugandaand-tanzania-sign-inter-governmental-agreement-for-crude-oil-pipeline/, accessed May 27, 2020.
‘Joint Press Statement—Uganda And Tanzania Sign Inter-Governmental Agreement For
Crude Oil Pipeline’ (eacop.com, 2017). http://eacop.com/publication/view/uganda-and-tan
zania-sign-inter-governmental-agreement-for-crude-oil-pipeline/, accessed May 27, 2020.
22 “EACOP Overview”. 2017. Eacop.Com. http://eacop.com/unlocking-east-africas-potential/.
‘Unlocking East Africa’s Potential—EACOP’ (Eacop.com). http://eacop.com/unlocking-eastafricas-potential/accessed May 27, 2020.
23 Reuters. 2019. “Ugandan Oil Pipeline Plan Suspended Due to Collapse of Tullow-Total Deal”,
2019. https://www.reuters.com/article/us-total-tullow/ugandan-oil-pipeline-plan-suspended-dueto-collapse-of-tullow-total-deal-idUSKCN1VP1WW, accessed May 27, 2020.
24 “Gas—Tanzaniainvest”. 2019. Tanzaniainvest. https://www.tanzaniainvest.com/gas, accessed
January 6, 2020.
349
Tanzania and Uganda signed an intergovernmental agreement (IGA) for
the construction of the East African Crude Oil Pipeline (EACOP).
21
EACOP will transport crude oil from Uganda’s oil fields to the
Tanga port in Tanzania. The Project partners comprise of the Tanzania
Petroleum Development Corporation (TPDC), the Uganda National
Oil Corporation (UNOC), France’s Total, China’s CNOOC and the
UK’s Tullow Oil. The proposed Uganda–Tanzania pipeline will be
1,443 km long and will cost about USD 3.55 Billion. It will have the
capacity of carrying 200,000 barrels per day.
22
However, the project has suffered delays, including most recently, a
suspension due to a stalled sale of Tullow’s stake to Total and CNOOC.
The delay in the stake sale has been caused by a tax dispute with the
Government of Uganda.
23
In natural gas, operations occur in the areas of Mtwara and Lindi.
A total of 67 wells for both exploration and development were drilled
between 1952 and 2013. Five (5) oil and gas companies are undertaking
onshore and offshore natural gas exploration activities in Tanzania. These
are Ophir Energy, BG Group (BP), Equinox, Exon Mobil and Aminex.
Natural gas annual production increased from 5.2 billion cubic feet
(BCF) in 2006 to 35.1 BCF in 2013. Most of the natural gas is used
domestically for electricity generation.
24 Natural gas is a cleaner form of
energy than petroleum or coal. Further, in 2015, it was estimated that
21 “Tanzania And Uganda IGA”. 2017. Eacop.Com. http://eacop.com/publication/view/ugandaand-tanzania-sign-inter-governmental-agreement-for-crude-oil-pipeline/, accessed May 27, 2020.
‘Joint Press Statement—Uganda And Tanzania Sign Inter-Governmental Agreement For
Crude Oil Pipeline’ (eacop.com, 2017). http://eacop.com/publication/view/uganda-and-tan
zania-sign-inter-governmental-agreement-for-crude-oil-pipeline/, accessed May 27, 2020.
22 “EACOP Overview”. 2017. Eacop.Com. http://eacop.com/unlocking-east-africas-potential/.
‘Unlocking East Africa’s Potential—EACOP’ (Eacop.com). http://eacop.com/unlocking-eastafricas-potential/accessed May 27, 2020.
23 Reuters. 2019. “Ugandan Oil Pipeline Plan Suspended Due to Collapse of Tullow-Total Deal”,
2019. https://www.reuters.com/article/us-total-tullow/ugandan-oil-pipeline-plan-suspended-dueto-collapse-of-tullow-total-deal-idUSKCN1VP1WW, accessed May 27, 2020.
24 “Gas—Tanzaniainvest”. 2019. Tanzaniainvest. https://www.tanzaniainvest.com/gas, accessed
January 6, 2020.