(Ecofin Agency) – Uganda is actively working to mobilize the necessary funds to support the financing of its oil pipeline project to enable the export of its oil resources.
In Uganda, the government increased the budget allocated to oil and gas on Friday June 14 to $246 million for the 2024-2025 fiscal year, a little more than double the initial $120.4 million.
Essentially, these funds should on the one hand support the development activities of the East African Crude Oil Pipeline (EACOP) project planned to transport Ugandan crude oil to the Tanzanian port of Tanga.
They will then be used to finance a refinery with a capacity of 60,000 barrels per day, in addition to additional investments in the promotion of clean cooking and the construction of a petroleum geosciences laboratory.
Recall that the monetization of Uganda’s black gold, notably driven by the EACOP project, has been significantly hampered by challenges since the final investment decision was made more than 2 years ago.
Recently, South Africa’s Standard Bank reaffirmed its commitment to contribute to the $5 billion needed to build the infrastructure as the outcome of financial talks with China is awaited.
Boureima Abdel-Latif
Read also:
01/20/2023 – Uganda: government agrees to build the EACOP project pipeline
03/11/2022 – Uganda: the public oil company plans new projects across the entire black gold value chain
